I bit the bullet and spent some money on decent bikes for my kids (though used) after some bad experiences with bikes from Target and Walmart. Funny thing is that they both *love* riding this tiny "Dora the Explorer" bike that I got for my daughter for $15.00
It was intended to help her learn to ride without training wheels. It was small enough that her feet could easily reach the ground while seated and I took the pedals and cranks off. My wife thought I was nuts but it worked.
So for a couple of years she's been able to ride her Trek but she still tears around the driveway and alley on the little Dora bike after begging me to put the pedals back on, - and so does her 11 year old brother who is *much* too heavy for it. It gets all kinds of abuse but still works fine.
I think they're fine for recreational purposes and maybe more if you know how to take care of them. I wouldn't take one on a cross-country tour.