Our son is getting a Kindle Fire. We debated on it long and hard. We purchased an otterbox for it. Expensive for sure. But we researched it and it seems like it may be worth the investment to protect the pad.
For about half a second we considered getting our five year old a tablet. We ultimately decided she wasn't ready for one. But when we were considering the idea, we were going to purchase the RCA tablet offered by Walmart. Mostly because it is only $69 and we could get it in pink. It does have a web cam. I am sure it is not nearly as fancy as the kindle and it won't have all the bells and whistles as other tablets, but it would have done the job nicely for our kiddo. And if it got destroyed, cracked or broken, it wouldn't be such a sting to our pocketbook.
Since she is not ready for the tablet, we opted for a cheapy smart phone (only $20). We downloaded the apps she would enjoy and some reading programs she uses on my nook. We activated the phone, but we did not pay for any monthly plan. It uses wifi at the house. And the aps that don't require wifi will work just fine outside of the house. It will be perfect for doctor offices and long car trips without the huge investment of the tablets. We'll save that for when she is more responsible and a stronger reader.