This is not a "hot deal" this ia a rip off. With telescopes the addage "you get what you pay for" applies, far more than it does with computers. The only deals on telescopes are found second hand.
60mm is useless for anything other than the moon and perhaps a glimps at saturns rings. Even high quality 60mm objective lenses are only used in binoculars and finderscopes at around 8x. The quality of any "department store" refractor is dubious at best. The mounts are unstable and awkward. In my experience they are worthless and should be used for day-time spotting scopes only, or trown away. They are so hard to use and get images out of, that most people who buy them will be turned off from astronomy for good and leave the hobby in disgust.
Go get a 6" or 8" dobsonian telescope... 6" is the minimum entry size for a telescope in order to get any decent results. Dobsonians are the ultimate "user-friendly" telescopes. You can pick one up for around $300 from Orion telescopes or some other dealer (Orion, Made, Coulter, Celestron all make good low cost Dobsonians).
There is a nich market for refractors... one good 70mm comes to mind (the Teleview pronto), but it costs $1200 + $200 for each eyepiece. It is primarily used for Ultra-wide feild, low power (20x) observations. Then you get into 4" refractors (105mm), which cost $2000 + for quality ones. Even then, they aren't all that hot for looking at general "wow, that looks neat" stuff for beginners.
Even with a 10" (254mm) telescope, you will be limited to 200x on a good night. The atmosphere is very unstable, so usually 120x will be your maximum. Most nebula and galaxies are best viewed at low power, 40x or so. Stating 500x on the box is absolutely rediculous for any telescope. I have used this type of mag before, but only from 10,000' under absolutely perfect skies, while looking at the planets through a very expensive and large (20" telescope.
The best advice I can give you... get in touch with your local astronomy club... they will show you the telescopes in actiona and you can make an informed decision about them. Many clubs even have a "loaner" program where you can borrow an 8" or 10" scope for a few weeks. Trust me, if you buy your kids a sub $100 department store scope, it will sit in the closet and get them frustrated.
However, if you want an ultra-cheap spotting scope... get one of these things, throw away it's tripod, and jerry-rig a more stable mount of your own. Probably not that bad for looking at terrestial objects.
Chek out these places for some info:
www.oriontel.com
http://www.murni.com/ody_0.htm