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Both of my kids have had tablet style e-readers and neither has broken one (Nook Tablet and Nook Color.) The younger one is now 4 and got hers when she was 3.
I haven't given a young kid an e-ink one but I'd be careful to get a case so the screen is covered when it isn't being used. In my experience, they aren't in danger when they're in use as much as when they're set down someplace they shouldn't be and aren't well protected. You'll have to keep track of it and make sure it doesn't get left on the floor where it can be stepped on or anything like that.
And the Nooks can be set up to require a password to buy anything, so I wouldn't worry about that. Also, the e-ink devices don't have easy access to anything but books. And the Simple Touch Readers are very inexpensive right now. I'd get a touch screen because kids are likely to need a dictionary and it's really annoying to look up words unless you have a touch screen.
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