I got a Canon Powershot A40 from Best Buy for ~$250. Like you, I had intended to stay at the $200 pricepoint but, after looking at many of the camera's and reading reviews, I found the extra $50 was very well spent to step up to the Canon quality.
It has great optics and outperforms many camera's with 1 or 2 million additional pixels. The sub-$200 camera's work just fine for small pictures but, blowing them up on photographic paper, they just don't cut it. The Canon with it's superior optics will blow up to a 5x7 with good photographic quality. The other benefit to Canon Powershot A40, is that is uses common memory that is very cheap compared to some other memory formats.
The Canon Powershot A40 will not win the smallest camera prize, or most gadgets on a camera award but, it's photo quality is the best in class and it's size and shape are very easy to use and hold on to.
Highly recommended for casual family use.