I would start with the camera and let them have the photos printed at CVS or Walgreen.

Printing your own photos is more expensive and since they don't have a computer, the results will likely be the same.

The money you would have spent on a printer can be better used by giving them several memory cards. That way, they can still use the camera while prints are being made from another memory card.

And it will be your pleasure to occasionally back-up their photos on a CD, so that they can play it on their television set-top DVD player.
Many set-top DVD players can show .jpg images.