I agree that *IF* the child is interested in photography, the features on the camera shouldn't be limited because of age. Much like computers, youth will be able to figure it out quickly. However, there is a fair chance that the camera will become a paperweight because the child is not interested in using it. I recomended the cheapest camera possible for that reason.
That does have the drawback of perhaps having to buy another camera within a few/several months. There is still an advantage to buying cheap now since by that time the child will/should have an idea of what they want in a camera: flash, long zoom, wide angle, light weight, ... Since you cannot get everything in one camera, picking out a new camera will teach something about trade-offs. Even if you can spend lots of money, there will still be trade-offs.
Likely prices will be lower in a few months as well.