I'd say its down to the child whether they can look after their `things' if you've got the kind of child who regularly breaks their toys or everything is scratched to bits then I'd go for a £10 basic mp3 player rather thab a touch etc..
I've only had one expensive breakage with my 3 year old , smashed the screen on my led tv by hitting it whilst running through the lounge and he assures me bob builder did it
I'm amazed at how quick children pick things up , at his age I was happy and content playing with my box of cars and building garages out of lego he knows how to work my tv, change the source and browse through my htpc and go straight to the folder with all his disney films and cartoons.
He's also a big music fan , knows how to put the music on and how to set the volume likes nothing better than dancing in front of the tv
He's got a vtech smile motion console , turns it off when he gets bored of handy manny trying to teach him spanish.
I've told my son if he breaks his toys and gadgets , the rest will be taken away and he'll get them back when he has learnt his lesson and it seems to have worked.
I'm also glad that he listens when I tell him its time to go to bed and I'm turning his tv off (he has his own lcd screen mounted on his bedroom wall. I thought it was a bit funny at first and was against the tv in his room idea as thought it would cause him to get up repeatedly throughout the night to turn it on, but most of the time he rather I read him a story by the time I've finished it he's out for the count.
He likes playing car games and trials on the 360 (which was mine)
So I've passed it down to him and its not connected to the net and won't be.
Was considering getting him a 3ds for christmas , along with his bike etc