If you're looking for a gift for a child that will inspire creativity -- more so than, say, a Bratz television set -- this Crayola digital camera for kids might be worth a look. It's on sale for $29.84 at Wal-Mart.
Its relatively poor quality -- 8MB of storage, 640x480 resolution, etc. -- have earned it some poor reviews -- but this looks like a fun way to introduce a 7-year old to photography in a format that's more user-friendly than the higher-end products.
For $58.64, you can get the camera with scrapbooking kit.
Kids need to be more creative and any reasonably-priced gift item that might encourage that gets high praise from me.
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