The best camera for photography is one that is fully adjustable. The only cameras you will find for under $200 like that are a good used 35 mm SLR with standard lens. Craigslist is a good place to start.
P&S cameras pretty much remove all the creative control from their users, that is to say they are mostly automatic so using selective depth of field, light graffiti, shooting action or sports are pretty much out of the realm of a P&S camera.
