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Ithink there are pretty much enough informations about how to use kindle in this thread, I'll just straighten something up, at least from my understanding.
1. Setting up an account with amazon does not require any credit card information, you can definitely register your kindle and benefit from those freebies.
2. DRM is not implanted by amazon, but publishers who try to protect ebooks from pirating. It is disturbing but please don't hate amazon.
3. Kindle is really a good reader and probably one of the best and easiest among all ereaders in the market. Don't be hesitate to try it out. I can see that you already had prejudice from the whole DRM and credit card info storing thing but no need to. I understand your situation but as soon as your little one is able to manage her own finance and I believe she will find those features convenient and easy.
4. You mentioned that your daughter loves fanfics and I was a fan too at her age. She can just copy whatever she likes in to a TXT file and toss it in to kindle, very easy.
Enjoy the gift.
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