If I were looking for a sub-$200 digicam... I would probably go with Canon as they have a good rep not only on their digital SLRs, but their point and shoots as well.
I know their "A" series is a great camera with a lot of potential. They're quick, easy, light, small, and offer pretty good performance for the price.
I would recomend looking at the Canon A80. I always keep one with me in my bag along with the DSLR. I just bought an A95 for the father-in-law for $300, so the A80 can prob be had around $200. If you can afford the extra $100 though, the A95 is a gem.