In the realm of stuff that is cool for kids but pricey but damn cool for kids,
FAO Schwarz has got a Make Your Monster offering. Kids draw a monster–FAO creates them a stuffed doll version of the monster.
Of course, the monster the kid there has created is a helluva lot better than I can draw–even today.
Update: Sadly, it seems that this offering is gone–in fact, I can’t figure out a way to even look at the FAO catalog on their site at the moment. Oh well.