I'm looking an application for children to learn about how to create games. I don't want something as complex as Game Maker. I need it to show children an entry point to create games.
Despite your reluctance I'd recommend Game Maker, game creation is a complex process and sometimes you can't avoid the fact you've just got to do some thinking. Surely you could sit with them and help them understand the process as you created simple games. In my opinion anything simpler will not really be laying any foundation for future development of skills in this area.
I think you should go ask Alice
(oh, I've been wanting to say that for weeks ever since I found it :-) )
Alice is an innovative 3D programming environment that makes it easy to create an animation for telling a story, playing an interactive game, or a video to share on the web. Alice is a teaching tool for introductory computing. It uses 3D graphics and a drag-and-drop interface to facilitate a more engaging, less frustrating first programming experience.
You should check out MyGameBuilder.com -- it is 2D, Flash/browser-based, no programming and designed for kids to create and share games.
To create a game, you create 'actor' characters, assign behaviors through setting properties and create maps which represent the game board.
There's a demo you can view here.
HTH - Michael