I was looking at Piccolo, but it appears to be obsolete.
Most music beginner projects I found need analog out into Audrino.
Any advice or instructable on a simple LED music visualizer project where when the child plays the piano, a microphone picks it up and then flashes LEDs based on the music?
There are lots of "sound sensors" or "microphone boards". If you are in the U.S., SparkFun and Adafruit are reliable suppliers.
But there are different kinds of sound sensors so make sure you get one that puts-out an analog audio signal. It will put-out a biased line level signal that can feed-into an Arduino analog input.
I have this one. It works OK, but it's not sensitive to quiet sounds so it might have to be close to the piano.
You should be able to find lots of audio visualizer "example projects", or just to get off the ground, take a look at my World's Simplest Lighting Effect. (It works with a microphone board or with direct audio.)
You might also look-into the MSGEQ7 chip. It would go between the microphone board and the Arduino. It gives 7-frequency bands of audio levels so you don't have to do the FFT/FHT frequency analysis in software.
For simplicity, I also suggest LED strips or matrix based on WS2812 LEDs. These can consume a lot of current, so use an external 5V power supply with them.
I can't recommend any particular project that uses these 2 components, but at least you have some search terms to look out for.