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They're all junk but it provides an opportunity to learn teach her some basic mechanical skills.
Put it in the workstand and have her help you go through it. Odds are the monkey that assembled it isn't any handier than your average eight year old.
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Very good advice. I just purchased a bike stand from Aldi for $30 so that'll be perfect to go through things with her.
She is dead set on getting the bike from Toys R Us (because it's pink) so I'm going to pick that up this weekend.
Also going to keep an eye on Craigslist for a used Trek or Hot Rock because they occasionally pop up cheap. There's currently one up for $75 which isn't a bad price. A few weeks ago someone listed a 24" Girl's Trek in great condition for $35 but it sold immediately.
ETA: The only reason I'd consider getting a second bike is so she could have one at my place and one by her mom's. I bought a used 24" Schwinn Ranger recently and the damn hub stripped out shortly thereafter. So it's either wait for a cheap, used 24" 21 speed to use for parts or dump the one I have and buy a cheaper used Trek. We'll see how it plays out with what appears on Craigslist.