I think there's some good dialog here, but I wanted to offer my own experience as a volunteer (I've been wanting to get around to writing a blog post about this topic actually!).
First of all, kids love Minecraft. And I mean LOVE it. Its ubiquitous amongst them. I tried to come up with an analogy to my own youth, but I can't. Its not a flash-in-the-pan fad like pogs were and its not Pokemon or Magic. I have met a handful of kids who did not have experience with Minecraft, but they almost always know what the game is at least.
I helped put together a few little Minecraft camps and workshops armed only with my own personal knowledge of the game (I too was an early adopter of the game) and a handful of mods. The first couple of camps I tried were pretty poor execution on my part. The kids usually found ways to mass-spawn monsters or create The End portals and generally stayed unfocused. They were way more interested in dinking around the game than doing anything productive.
But then we put more structure around it and locked some of the features down with mods. They kids were tasked with creating a city, so I plotted out a flat grid of land and gave each of them access to a city block (sometimes 2 or 3 of them would get to share a block). It took a few sessions, but they made a pretty cool looking city. And for the most part locking down the areas kept them on task.
Recently I helped out with a camp that let the kids choose between building structures, creating mini-games, or programming. The programming part was mostly using the ComputerCraft mod[1], which was pretty much like turtle. You could program a robot block to mine or build for you. The potential here is pretty huge for kids to get into programming from a very early age who normally wouldn't since its very accessible (think Scratch, but in a game they already love).
What I keep reminding myself though is that Minecraft is yet another great, accessible, family-friendly game that can help introduce kids to computers very early. There will be a certain percentage who take it to the next level and learn how to create simple java mods for the game. There is potential for some to craft huge sculptures and cities and generally expand their artistic skills. I think there is a very real connection between many people who love programming today who also loved playing games in school like Oregon Trail and SimCity, that's the potential for Minecraft imo. So even when they aren't totally being focused and are just playing around in the world, its giving them a friendly impression of what computers can ultimately do.
[1]: http://www.computercraft.info/