We used NetPublish during the last school year with kids in a 5th grade class (10 and 11 year old students). We found it to be a great tool for students to work with. The OutPublish component worked great as well, allowing the teacher to publish his students work to the outside world with one click.
I don't think it is totally ready for 1.6 yet as when I converted Moodle told me that there was no UTF8 upgrade script for the DB. I did notice that after the upgrade many of the students articles had lots of question marks (?) in them which from my reading is a UTF8 issue. Hopefully this module will be completey 1.6 compliant soon because we want to continue to use it.