My DS got an IPad mini for his birthday when he was 7. (I have an IPad and we used to share it). Yes, I agree it was an expensive present.
He uses it regularly (when he is not outside playing football or cycling).
He uses it for watching films, tv, reading, listening to music and playing games such as FIFA and Minecraft. However it really comes into it's own for school. He uses it to contribute to his class blog, research stuff for his home work, spellings app, the school maths app etc.
On long journeys and flights it is great.
He also Skypes his Grandad and his Aunt, who lives abroad.
He also takes it to his Dad's on a weekend, so he can speak to me if he needs to via FaceTime.
A lot of his friends has tablets (probably not IPads). They are incredibly useful.
He does not have a phone, as he doesn't need one yet. He will get one just before he starts High school, but it won't be an I-phone.