Hi! I have done rainbow cakes and they are a hit. I use a french vanilla batter and take one cup at a time and mix with food coloring, then I pour it into the cake mold. I pour the next one on top right in the center and continue until I am done with all the colors.
My daughter's daycare loves this and so do my high school students!
here is the link to a recently decorated one for the cake decorating class I am taking:
http://www.cakecentral.com/modules.php?name=gallery&file=displayimage&pid=1223369
I've thought about with a white cake making a chocolate buttercream filling and throwing in some crushed m&m's. I just know kids usually like "candy" too. And I wouldn't have to deal with them
Good point, kids love m+m's in everything. Anyone ever tried m+m's in the batter...I wonder if that would work? My dd just had an m+m cookie, that's what made me wonder.
M+M's and rainbow sprinkles, beyond that you don't even need to decorate the cake!! (but of course I do anyway 
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