There are also some good toy-related sites. Thus far, Maggie's favorite is pollypocket.com. The games are quite well thought-out. For one thing, every game requires the kid just to click once on the screen to make things happen. She just doesn't have dragging and dropping figured out, and some games won't work unless you can do it.
Note that there are also some truly awful toy sites. The "bratz" site, for example, is just an extended commercial for the toys. PBSKids.org is a mixed bag. It's got some really good kids games (Cookie Monster's Cookie Crunch is a favorite), but there are also some games that are obviously slapped together and don't work well. The Barney site is particularly disappointing, with only a couple of mediocre games to show.
Mind you I'm not predicting the demise of kids' software. Maggie's Kinder-Care, for example, has computers but no internet. I'm not sure what games they're running, as I haven't seen any licensed characters in 'em (Mickey, Reader Rabbit, etc). And I don't think they make educational software without licensed characters anymore.