I've previously written about good magic books for children, but for many kids a book about magic is, well, a little boring. But a magic set, now we're talking! Many beginner magic sets these days are largely filled with plastic junk, but the sets from the toy company "Melissa & Doug" are really worth considering. They make three separate models, each of which includes good tricks made of sturdy material (such as wood) and non-cheesy design.
While we're on the subject of inculcating little ones with creative and worthwhile hobbies, I spotted an Instant Doorway Puppet Theatre in a catalog. Every kid should stage a puppet show for their peers (and parents) at least once, and this item is surely the Apollo Theatre of the puppet world. Oh, to be a kid again!