You get exactly what you pay for

We bought two iZone300 cameras for $30 for our kids (5 and 6) for Christmas.
So far they seem pretty durable and have survived everything the kids can throw at them (or throw them at).
Picture Quality is poor but about what I expected for a $30 camera (the kids are happy so I am too). The ambient light level makes a huge difference, outside in good light the pictures are good, inside in poor light (even with the flash) pictures tend to be blurry.
Battery life is shorter than I would like but it recharges quickly (via the computer USB port) and again...the kids are happy...plus it is teaching them patience as an added bonus! Of course, using the flash dramatically reduces the battery life.
The camera does seem to have some firmware issues and has frozen twice, but that was easily fixed with a reset.
The internal memory is tiny allowing only a handful of pictures but we picked up 2 1Gb SD cards (free after rebate so no additional cost!) and they store hundreds of pictures.
The camera is very easy to use, our 5 year old had it mastered in just a couple of minutes. She is happily using the flash and deleting unwanted pictures.
Overall the camera is acceptable rather than great. If I had payed much more than $30 I would be disappointed but given the price (and the intended use) I think the camera is fine. It certainly compares very favorably with other cameras in its price range which tend to be extremely basic with 640x480 webcam quality pictures.