Here's a $150 camera that should take good pictures. It has a 3x optical zoom lens and is 3.2 megapixels. Kodak is no Nikon or Canon, but they have been making cameras for 100 years.
Kodak Easyshare
If you go up to the $200 - $250 level, then you start getting into the Canons, Nikons, etc. with lots of nice features like more image control options, better zoom lenses and more megapixels.
Taking good pictures is 90% photographer and 10% equipment. Look at footfootfoot and his paint can pinhole cameras.