My daughters (10 and 5) both have the fisher price cameras. I don't think the picture quality is necessarily "garbage" but it's comparable to the quality of a phone camera when printed. My mom has a pretty expensive camera phone and her pixs are more bitmapped than the ones my daughters take. Guess it's pretty subjective in that regard.
Moreover, my 10 year old dropped my Kodak Sure Shot the first and only time she held it, which I got on sale the day after Thanksgiving for $88, and it broke. She has dropped this other camera, left it in the sun and in the hot car - it seems to take a licking and keeps on ticking.
Both are able to download their cameras and operate them independently - which is what I had intended. Overall, I am pretty happy.
I didn't know they were being discontinued. :(