The pack strikes me as more appropriate for an adult (or at least a teenager). I would eliminate the paracord, compass/thermometer, fire starter, and multi-tool, and focus on the basics: water, food, warmth. Paracord just doesn't seem like something that should be on the must list for an eight year old's small waistpack.

I would pack:
Water.
Food (when my son was small we packed his waistpack with a couple of kid's snack bars, a package of peanut butter crackers or a packet of nuts, and some comfort food such as gummy bears)
Warmth: fleece cap, poncho or the ever reliable large plastic bag, and gloves if there is room
Light: flashlight
Whistle

The idea of laminating some "Hug-a-Tree" directions and adding a family photo with "We love you" is great.