@boomerang,
Oh, I'm a bit late then.
I was going to recommend an iPod Touch. We got a free one thrown in with our computer, we didn't seek it out or anything. But sozlet absolutely loves it.
In her age group, they all seem to have iPod Touches and use them for 90% of their online activities. Instagram, Kik, music, various games, etc. Most of them have cheap phones that they use for calling and texting when they don't have access to wifi.
Some of them have actual iPhones, more as they start being handed down from parents who get new ones. (I just got an iPhone! Finally became available with my discounted Sprint plan. I like it way more than I expected to, and I expected to like it.)
An iPad Mini is basically a big iPod Touch. Lots you can do with them.
Not many people around here have those yet since there isn't a lot of point in having an iPad Mini AND an iPod Touch.