Setting up an iPad mini when I already have an iPad 2

I bought an ipad mini today. I already have an ipad 2 but will be passing it on to my three year old. I have many apps that are both suitable for myself and ones that are suitable for my three year old. As a result of this I want to use the same apple ID so I don't have to purchase all the apps again. It is my understanding that I can have up to five devices per apple ID. Is this true?
My next question is what would be the best way to set it up?
Just do a restore of my back up and then delete the kiddie apps? or
Set it up as a brand new iPad?
If I set it up as a brand new iPad but using my old Apple ID will I be able to use the already purchased apps or will I have to purchase them again.
I was thinking that it might be best to set it up as a brand new iPad as then when I do a back up I won't end up getting all my three year old's apps on my computer each time.
What have other people done in my situation? I would like to make it as streamlined as possible so I don't have to fiddle about each time I sync the different ipads with my itunes account.

Yes, you can have multiple devices on the same apple ID.
As long as you use that same apple ID, you won't need to repurchase your apps.
As to set up as new or restore from a backup, I guess it depends on what else you have on there. Lots of data you don't want to have to set back up again? Documents, etc?
I suppose what I'd do is sync your old one. Set your new one up from the restore of the old one. Then you can either take stuff off your old one, or wipe all content and settings on the old one, and set it up as new and then only put on it what you want your kid to have on it. You can also enable restrictions to keep him/her from doing things you may not want done, like using safari, etc.
How I'd do it isn't the only way. Maybe you want to set your new one up from scratch and just restrict/delete stuff off the old one? It can certainly work that way as well.
You'll also want to make sure the 'automatically sync apps' etc is off for both devices, that way what you buy doesn't go onto their iPad and vice versa.

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