There is a cheaper knockoff of the Nightstar called the "Forever Flashlight". You can find them on ebay, froogle.com, etc. They come in a few different sizes with the smallest being not much of a weapon. I haven't seen one in person and from what I hear they don't perform as well as the Nightstar, but a 2yo is unlikely to care. They do cost a lot less.

The Nightstar is well made but except for special applications like this, IMO it's not a very practical light.