Question for OP: the game introduces kids to the imperative paradigm. As somebody who's been exposed to Logo at the age of 6, I can tell I had an awesome time moving the turtle around. But: do you, Dan, think that one can build an equally compelling game based on the functional paradigm http://en.wikipedia.org/wiki/Functional_programming , where you have no "side effects" and all you can do is create and compose functions?
Stated otherwise: Turing Machines seems just fine to play with. Any idea on how to make Lambda Calculus just as sexy for kids?