Things have been going nicely with the iTouches. The kids are savvy enough to problem solve on their own with them, and are excellent instructors to each other. Here is one lesson learned, though:
I occasionally let my daughters use the iTouches, like when we went to Disney (knowing full well I'd have to replace them out-of-pocket if anything happened to them). Because of that, there are some games loaded on them. The games were all tucked into a folder labeled "Do not touch" and placed on the third window. I was really thinking that firsties wouldn't find them, after explaining that they had no business going anywhere on the iTouch but the first screen. Yeah, right. On the first day one of them exclaimed "There are games on these!". Not being smart enough to just remove them, I laid out the law: "if you open any game you will lose your chance at using the iTouches". Big teacher and big talk, little ears that lack self-control. I brought the touches home last night to charge them up, and the first one I opened had Angry Birds open on it. Not only did they open the game, they played it and then neglected to even hide the evidence!
Lesson learned: just remove all the dang games and stuff you don't want the kids to see. Keep the Do Not Touch folder full of boring system stuff.