At 200 that rules out the ipad unless that the budget can go to 299 for the new mini.
There's a lot of junk near the 99 buck mark and we call those training pads. You get those to figure out what you want.
Try the Kindle Fire HD. The only grief I can see is item 3. These are not PCs. Not one in this price range is adept as your PC.
My mom's really big on spirituality and wants something to
1. get online,
2. use a search engine to search for different pastors,
3. and watch their sermons.
4. She also wants to watch sermons on YouTube.
She's never been on a computer before and Dad has an iPad on which he's shown her how to use a search engine and view video. She doesn't want to download anything! I may teach her how to do email.
Prior to this she's NEVER even touched a computer before.
Her budget is $200. We'd like to get her as large a screen as affordable with Wi-Fi.
How about an E-Reader?