It's about time a major manufacturer put some effort into bikes for kids! Kona has just announced an expansion of it's line of "performance oriented, discipline specific bikes...to get kids on the singletrack or in the park young and keep them moving fast." (Read the press release on BikeBiz.com for all of the particulars.)
Models include:
Dirt jumping: Stuff 2-4
Freeride: Stinky 2-4
Cyclocross/Urban: Jake 2-4
With a name like Stinky it just about seals the deal for my kids.