I see Scratch was mentioned (although in unfairly disparaging terms, IMHO). For those who insist on a "real language", check out some of the stuff that Mark Guzdial has done at Georgia Tech. It focuses on what Guzdial calls "media computation" and comes in Python and Java flavors:
<a href="http://coweb.cc.gatech.edu/mediaComp-teach" rel="nofollow">http://coweb.cc.gatech.edu/mediaComp-teach</a><p>Guzdial's work is aimed at teaching programming to undergrads (who may or may not be CS majors) but would make a great starting point/inspiration for designing something for younger kids.<p>Other things that might be interesting:<p>Alice:
<a href="http://alice.org/" rel="nofollow">http://alice.org/</a><p>Hackety-Hack/Shoes (please come back, _why... we miss you :-):
<a href="http://hackety-hack.com/" rel="nofollow">http://hackety-hack.com/</a>
<a href="http://www.shoesrb.com/" rel="nofollow">http://www.shoesrb.com/</a><p>The Inform 7 system for creating interactive fiction:
<a href="http://inform7.com/" rel="nofollow">http://inform7.com/</a><p>Scripting languages for virtual world software, e.g., the Linden Scripting Language for Second Life/Open Sim -- it's a nasty, nasty language (even its designer agrees :-) but lets you do some really powerful and impressive things:<p><a href="http://wiki.secondlife.com/wiki/LSL_Portal" rel="nofollow">http://wiki.secondlife.com/wiki/LSL_Portal</a>
<a href="http://opensimulator.org/wiki/Main_Page" rel="nofollow">http://opensimulator.org/wiki/Main_Page</a><p>Open Cobalt:
<a href="http://www.opencobalt.org/" rel="nofollow">http://www.opencobalt.org/</a><p>Open Wonderland:
<a href="http://openwonderland.org/" rel="nofollow">http://openwonderland.org/</a><p>I used to teach a course covering this stuff which was designed for teachers:<p><a href="http://contraterrene.com/course_outlines/VirtualWorldsOutline.html" rel="nofollow">http://contraterrene.com/course_outlines/VirtualWorldsOutlin...</a>