I have an old 16GB 1st gen that I paid $100 for a few months ago. It was mint, and was for my 2 year old son who ALWAYS wanted to play with mine (and I run a naked 5 haha...).
Three months later and a FischerPrice case for it, and it's still working fine and still in great shape (even with a 2 year old tossing it around daily!). He loves his "pishures", and "VohTon" (I put the Voltron Movie on it haha). It's absolutely incredible how adept he is with it.
But back to the point. Out of the box, in NM-MT shape, 16GB = $100
Crazy for a 6 year old electronic.