Advantages of new iTunes account over sharing mine for child?

Hi -
I've tried to read through the previous discussions but there are so many and many were before iOS 5 - here's the situation:
My husband got a new iphone 4s so we disabled the AT&T contract on his 3GS and want to give it to our daughter.  She currently has an iPod Touch but it's linked to MY iTunes account. The advantages of this in the early days was that I could easily put her music on and then we only needed one purchase of music, apps, movies, etc.  (Obvious disadvantage was that now I have to have Justin Bieber in my iTunes account music and videos!) 
Anyway, her iPod Touch was the 2nd generation so it couldn't upgrade to iOS 5 - giving her the iPhone 3GS will give her greater capacity and the iOS5 functions, so that's great.
I was thinking with that upgrade, I would also need to/want to set her up with her own iTunes account.  Then, she could manage her own music, apps, upgrades, etc. Also, with the phone camera feature, her PhotoStream would be independent of mine (that's key because I don't want her zillion photos on my iphone, ipad, computer, etc.)  Plus, I believe she could use iMessage to text just me and my husband (without the phone contract) while she can't if it's technically me signed in on both devices.  I think we wouldn't need to make duplicate purchases if we used home sharing to copy over the little bits of music, videos and apps she currently uses.  And, I was going to manage with the iTunes allowance/gift card option.
That said, as I started reading up, it seems there is some drawbacks to setting her up on her own iTunes account if she doesn't really need it yet?  It seems most suggest keeping her on my iTunes account.  I just thought it might be time for a clean break - are their obvious advantages/disadvantages to her having her own iTunes account that I am missing?
One last, but slightly unrelated question, when I go to wipe my husband's phone and set her up, is there any way to pull her settings, music, apps, etc. from her current iPod Touch or do we have to start from scratch b/c of the different devices. 
Thanks in advance -

Due to the New Year's holiday,  I thought I'd ask again if anyone had any guidance on this.  She's very anxious to get her "iPhone that's not a phone. 

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