Comment by mst
I feel like it would be creepy if the kid was using it without anybody ever checking up on it ... but I think all of my friends with kids would say that the answer to that is "parenting."
I mean, giving a kid an unlocked iPad and not bothering to do basic supervision can also have really creepy results, so I'm unconvinced that something like your work actually makes anything worse in the negligent parenting situation, and seems like it could be a lot of fun in the competent parenting one.
If you haven't already done this, I'd note that I can think of a number of parents who would probably rather enjoy a version of story mode that let them collaborate with their child and your code to put together a bedtime story before they turn it off for the night and tuck the kid into bed.