The fact that going to the game, hanging round outside the ground with a bag of chips or listening to auld bastards sing and tell stories in a stinking pub should be enough entertainment for a kid. If not, they should go to dance class or some other activity. I used to fucking love it, the buzz and excitement. I started going the game when I was 8 and if mighty red came up to me then and tried 'entertaining' me, the prick would have been given a kick in the sack.
I was the same mate, I was going to The Clarence when I was 5 (on a borrowed ST) before and after games with my Dad and a big group of his mates, then got my own ST the year after. I'd of much rather of been in there than seeing some guy in a suit.
Kids these days (not all) aren't like kids from years ago, much like kids from years ago weren't like the ones from years before that. There is clearly something the kids like about mascots which is why the club and others around the world bother to have them. The pictures of him interacting with kids in schools, on the tour, etc. certainly appears to entertain them.
The whole match day experience has changed as it is anyway, less go the pubs around the ground and after the match as before anyway, I'd much rather the kids did something to sew the seed of love for the club, even if this means being in some kids fan zone with a foam dinosaur thingy than being at home for an hour longer sat playing with some strange monster things on their Xbox.