I think I saw Pages. I think there was a cheaper processor, for like $1.99.
Cheapo paint program thing is fine. She's not really an artsy type, she just needs something to view and edit photos. That is, closer to bottom of the line.
Safari is fine. You've heard my thoughts on google. My mom's thoughts are probably something like "If you have to pay more than (...) for it, screw it." Google is a good search engine, but I'm not thrilled about much of its other stuff, and she definitely said she wants to save money. $15 is likely all we'll spend.
Angry birds is my bro's choice too. Probably get Smurfs for her too (just because it's goofy), if we can ever get things to function.