Bought this for my 3yo this Christmas. He loved taking photos using my camera and my mobile or indeed any camera he could get his hands on so it seemed obvious to buy him his own. Initially put off by the price of this but having considered the cheap digital camera option decided he's only three, let him have some fun.
Am delighted with it, read lots of reviews so wasn't worried about the quality of images just want him to be confident to click away at what he wants. If any turn out to be printable that's great, if not he's had fun using it. It also features some games and lots of different effects that he is still discovering and enjoying and that is all that matters. He has other toys for educational needs etc but this teaches him sociability i.e he is not shy to ask someone to pose and smile, it also helps with coordination, composition etc etc and it really is great that he can drop it and so far it is still in one piece.
He's not the official family photographer yet but in time I suspect he will be! Then he can move onto a more 'grown-up' camera.