I'd say this would be better suited to a class slightly older, perhaps year 2 or 3. I think if you are designing a site for Year 1 you need a lot of oral instructions as many will be unable to read the written instructions. Many students in the last SP seemed to make a site for year one's; I'm not sure why as I think this would be one of the hardest to create for considering their limited literacy.
This is a great website! will definitely help in the first assignment. Would also like to add that the Gruffalo is the "in book" in my house at the moment!
Although this is an American site it looks like it could be useful for teachers wanting an overview of technology that could assist them in the classroom.