An old computer as a Christmas gift?

I recently replaced my Apple iBook G4 with a new MacBook. My DD has been wanting her own computer. She uses our family iMac which is in a central location. One problem with that is that the kids often want to play games, etc at the same time. I don't like giving up my computer because I end up with strange settings and downloads, etc on it.

I am having a hard time deciding whether to give DD my old iBook (still in nice condition) or do something else with it.

My biggest concerns are (not in any particular order):

--I worry that I won't be able to monitor her computer use as well if she is more portable.

--Is it too extravagant a gift? I know I am not PAYING $1200 for it now, but that's what I paid for it when I originally bought it a few years ago (she doesn't know this, though).