First of all, here is a good website to have a quick review of digital camera: Dpreview (the forum is full of information but it... really s#cks)
I recently read a lot of good review about this Sony (dscrx100).
I am using an "old" Canon S90... and it's really good and avoids me to take my reflex. The new model seems to be now the S110.
But those cameras should be above 150$ for last models. May be second hands: you should avoid ebay... search on your resellers websites. I don't know in England but in France now many have a second hand section on their website with a warranty of 3~6 months (for reflex & lens).
I recommend taking a look at the 20 November episode of Tekzilla at revision3.com/tekzilla because there is a run-down of many of the latest digital cameras you may want to look at. Should be able to view that episode online and skip right to the part on the cameras (helpful "dots" on the progress bar to show you where to skip to).
I got my girlfriend a T3i (with lens) when those were fairly new for about $450
Since it's black friday you may find coupons to make the deal extra awesome. I'm generally able to find at least a free shipping offer for orders over $100.
Ken archives his "Today's Updates" page on a monthly basis right now. You may need to go to the page mentioned above, search for 'November 2012', click on that link and then find the iPhone 5 paragraph.
If you're into mirrorless cameras, Thom Hogan has a pretty good site up and running now called sans Mirror: http://www.sansmirror.com/
Yes, Panasonic Lumix digital cameras have a good reputation with their zoom lens. The lens range is very wide. A friend of mine bought one after having tested a refex with several lenses. He didn't like to change them, so he chose a bridge.
To be honest, "a little bit more" is too much, I just need something to shove in my back pocket so when i'm out photographing Koi at the mud ponds or bowling them up for sale I can just flip it out, take a close up photo which will take a nice high quality picture to post online. It will probably last less than a year by the time its been battered and bruised with day to day usage.
Funnily enough. I'd recommend either an iPhone 5 or Galaxy S3.
I took my Pentax Optio W90 on holiday and a couple of times forgot to take it out with me, so pulled out the iPhone thinking I may get 1 or 2 shots that were ok. Every single damn photo came out MILES better than the Pentax! Even low light ones were amazing.
Not sure if the latest iTouch has the same camera as the iPhone 5, but if it does it's certainly better than pretty much ever point-and-shoot digital camera around the same price.