SCOO  Outstanding multimedia and game development software. I have precious little programming experience, but was able to make a breakout clone in under 3 hours. My 7 year old loves it as well, I showed him the basics, and he was off to the races making his own apps in a matter of hours. The programming model Scratch uses will appeal to any visual learners; fInally, I understand what variables and loops can do.   
(Version 1.1)

$IR M.  Scratch looks awesome -- a fun, painless way for kids (MITML says 8 and up, though I bet a sharp 5-year-old could grasp this) to learn about rudimentary programming concepts. Its puzzle-piece subroutine metaphor is intuitive and well thought out, and if we accept the standard formula (power + simplicity = elegance), then I believe the e-word definitely applies! The included code examples illustrate a wide variety of concepts, so kids can feel comfortable diving right in, and a way to share one's programs with the world (the app is also cross-platform) has been built in as well.

It's still a work in progress: during testing I had to force-quit a few times. But not to complain -- this is a very worthy idea. (Imagine if it came with a standalone compiler ... yikes!)  
(Version 1.1)