Ah scratch. Some years ago I wanted to show what cool stuff you can do with computers to a 10y old boy. Found scratch and actually got hooked myself for a bit ^^. Ended up with this (slightly embarassing thing): http://scratch.mit.edu/projects/DeepDuh/941811. After programming a bit, the limitations become apparent big time. Google's idea to implement this as a Javascript parser is probably a good idea, this way some kids may make the bridge to the actual program. Also, it's probably way way better performing.
If you like visual programming, have a look at subtext. IMO this is the best idea for a visual programmig style, I hope it gets traction http://www.subtextual.org/.