This could teach a lot of kids at least some financial literacy, which is valuable in any situation or tax regime.

Personally, I would have loved to have some money on such an investment account as a kid, and I would nerd out on its development, discuss it with friends etc. Knowing that everyone around me has the same account would also make it less taboo to discuss money in general.

You would, but most kids would not care. I question the value because I've seen plenty of kids spend every penny they get on candy and other such things that are not valueable long term.