well i find having any gadget...be it a palm or the tablet heightens the desire for the kids to want to play with them...my 8 yr old keeps stealing my test units....which is ok...he lokes to doodle on the notepad(palm)

on a long road trip I'd ripped a few DVDs to SD card, and it made my son very happy to have something to do... he'd never worn headphones before so that was tricky for a few minutes. being able to trust a high quality in-car nokia charger to not blow up my tablet was nice, so battery life wasn't a problem.
my son also enjoys the paint programs too.
he also makes use of the many games my wife and I have on our Palm pilots, so when the palm emulator gets better that would open the tablet up to many excellent games!

I used my n800 with mplayer to play videos for our 3 yrd old when at restaurants or on the road (also pucca and some other series). Installed G-compris and used if for a while, but some of the games run slow (don't know on diablo though). Tux paint was a good tool for him... Also, had 2 batteries... Taking ou the tablet with a little kid hoping for a movie or a game , only to discover that the battery is empty leads to an upset little boy !

My daughter was born last week. I used my n810 tethered to a Verizon Centro via bluetooth to post pictures and updates from the hospital. It was a great tool to have and fit in my pocket (of course) compared to the full laptop.

Things I used the combo for:

Twitter updates from the n810
Work(ugh) exchange emails since the baby came early from web mail on n810
Pictures posting from the Centro to Flickr
Pictures posting from the Centro to Facebook
Car share rental to bring the baby home from the hospital n810
Mapping to find the car (n810)
Phone number lookup from pdf address listing (n810)
Flickr browsing to read comments n810
I also brought the n810 in case I needed to look up in on any medical questions, thankfully it wasn't needed, but it was nice to know it was available.
SSH access to my personal email n810
General web surfing as needed

Things I wish I was able to do but didn't get a chance
Real digital camera uploads from SD card (didn't have a card of right size to share)
Video conference from the hospital

I'm rocking my 5month old right now while surfing and listening to a podcast on my n800!

I showed my son episodes of "Yo Gabba Gabba" on the tablet to distract him during his first real haircut.

I was stuck in 3 hrs of traffic this weekend heading to Hamptons and my 2 year sat patiently watching little einsteins, max and ruby and gabba gabba. Much better than jut one DVD

xGalaga - I downloaded that game over the weekend and my 4 yr old loves it. While it is a crappy "clone" (I use that term loosely and only use it because that is what the xgalaga site use) of Galaga, it is good for the kids.

2 kids : 1.5 and 3 years old

they play with sketch (watch them so they dont scratch the screen)

media player for Dora -Diego - Thomas the train and BOB the builder episodes I recorded from TreehouseChannel.

By the way, Mediaconverter will handle the .ts files made by your TV/sat pci card .

the n800 is a life saver when they are sick and we have to go to the medical center or Hospital. And bonus for us, there's a lot of open wifi around the hospital so just sitting close to the windows and you can browse the web for free.