I bought one of these for myself. They're not just entertaining for kids, they're great for adults too! I was sooooooo impressed. It just shows how much technology has advanced. He can dance, he can sneeze, he sits down on his little stool, crosses his legs and tells you a story, can tell you joke, can give you a hug and blow you a kiss etc. He can do so many things, and he's so cute!
Elmo's got a lovely soft material on the outside of him, but he is obviously a fragile toy with all the sensors, and contraptions inside of him. He certainly couldn't be thrown about, and you couldn't bend his arms or legs excessively or you would just break him. Just be aware of that when buying it for children. As long as they play with it gently, it should be fine.
The only thing that's going against it is the £58.00 price tag. It is a very expensive toy, and some people will find it a bit too much (especially during these credit crunch times). Of course it is worth it, but it would probably sell a lot more if it were £10 cheaper.
The next stage for Elmo is for him to actually walk, and then there'll be no stopping him - he'll be like a live muppet robot in your home!