I do believe you have nailed it with your small projects. The only negative with suede is IMHO, it cannot be stamped, and dyeing is difficult and quite often not required.
For punching holes, I use a drive punch (hit with a hammer), rather than punch pliers. If a child is hitting ANY tool with a hammer, I use a simple tweezers setup made from thick fencing wire or thin rod, so I can keep my hands out of the strike zone.
Place the leather on a piece of softwood timber to punch holes, so there is no damage to the table or bench surface or the punch.
I am taking a class of thirty 10 year olds next week, for a lesson in key-tag making. To expedite things, I have pre-punched all the holes for lacing. Pics will follow.