It's a perfectly good camera but it all depends on what your son wants it for. Compact cameras are easier to carry around, so you're more likely to have it with you, but they're not as flexible as SLRs. You need to know the likely usage before you can recommend something.
I agree it's an excellent camera if he wants DSLR rather than a point and shoot compact. Aimed more at those who want to be serious and learn about photography, fstops, speed etc although it will have auto function. They are a bit more cumbersome to carry around and extra lenses for long distance and close up work are expensive. I think it's a great present (I have a Canon DSLR).
Check out Park Cameras for price. I've been dealing with them for 20 years or more and their prices are always good, customer service is excellent and their part-exchange prices are generous too.