I know the Kodak digitals we have are not the best, but they were reasonable priced when I got them for my Wife and Daughter for different Christmases in the past.

They are pretty simple to use, and take a decent picture.

Cameras, in my opinion, are similar to computers, in that the one you want is always a little too expensive than you want to pay for at the time.  As prices get cheaper, the more expensive ones have features you believe you need.

My daughter bought a cheap Sponge Bob Square Pants digital camera that doesn't take a bad picture, but not the quality of the one I bought for her. 

One thing you might consider, I have been shopping for a new cell phone, never thought I would want a camera on a cell phone.  But, some of the new ones have large megapixil features, and can be downloaded directly to the computer through memory chips.  After learning this, I am beginning to think I might want something like a Motorola Razor.  My dealer, which I trust, says the battery life on the Razor is a little weak, so I may look at another model.

Maybe an advanced cell phone camera would be something that would work for you?