When I was a kid, I was looking to buy my first gaming device. I was debating between getting a Nintendo DS and the 4th gen iPod, ultimately deciding on the iPod. This ended up being a great choice as I was able to get more games than I would have been able to on the DS and it opened up a world of being able to text my friends (primarily through Words with Friends at the time).
It's a shame it's being discontinued, it was the perfect first device for children.