Moral implications of LLM aside, this is an always-online, subscription-based toy that will eventually turn into a brick (unless the parent is an HN-er).
I find it really sad that this kind of toy is sold in stores.
This is up there with "Easy-Bake Oven" among plastic doodads that will be used for ~40 minutes and then added to a pile of plastic garbage many adults keep in their basement.
I don't oppose to the open backend of the device (it should be table-stakes for this kinda thing), but the concept seems really zero-sum and disposable. It relies on a form-factor that most kids don't use and depends on the novelty of AI which will wear off pretty fast. As much as I hate to say it, this should have been an app or a website.