I picked up a Panasonic Lumix for about $180. What sold me was that it was waterproof. I wanted something we could take anywhere with the kids and not have to worry about it getting wet. It easily fits in my pocket &takes great pictures.
not sure what the prices are today, but i got an Olympus Tough series. Get it wet, drop it, stand on it, freeze it - it still works. took it white water rafting and got video the whole way. gets good pictures underwater as well