I've got one of those Gepe cases. I think I got it when I bought some filters from 2filter.com a couple of years ago (Keene represent, yo!). It's a sturdy little thing, but it's actually kind of tough to get my CF cards out of. Better that than falling out...
Is your daughter taking a computer to download the pictures to? You might want to do the fatherly excess thing and get her a fistful so that she doesn't run out of space.
Ian, I haven't seen much of an exodus from CF. Canon's newest dSLR, the 450D, does use SD, but the general consensus seems to be that they're doing it to attract the point-n-shoot crowd. From what I can tell by looking at Nikon's and Canon's higher-end models, CF is alive and well. All of Canon's SLRs (with the exception of the 450D, released last week) use CF as the primary storage medium. I can see it appealing to pros because the cards are more durable and less likely to get lost... That's how I feel about 'em, anyway.