Fun Kid Activity: Lines of Colored Tape, straws and pompoms. Try straws and cotton balls. Adding the lines ups the challenge. Using pompoms allows you to adjust the size from tiny to pretty big. The pompoms are also nicer looking.
My daughter is too old for the letter matching task, but love the idea of the clothes-pins. Going to make more complicated, teen-friendly game and use the clothes-pin instead. They would be great for her fine-motor skills and hand strength.
Learning basic sewing with a polystyrene plate, yarn, + plastic needle. I remember doing this with craft mesh when I was a kid and then graduating to sewing buttons by hand onto little pillows and pockets.