If you believe you're going to find an excellent ultracompact camera for less than $130, it's time to get your believer fixed. However, at this price point it's possible to find one worth owning if you have few feature needs and/or low expectations. The Sony Cyber-shot S750 is one such camera.
Its greatest assets are its small size, light weight, above-average looks, and simple operation. The S750 is a camera you can feel comfortable throwing in your bag so you always have a shooter that's more than likely better than the one in your phone. If you lost this camera, you'd immediately be more upset about the pictures on it than the replacement cost. And it's certainly a safe bet to give to a child so they keep their sticky jam hands off your higher-end camera.
However, the S750 is on the slow side when it comes to starting up and the amount of time you have to wait between shots. The image quality is also on the "bleh" side of things, producing photos that aren't all that sharp, lack detail, and have noticeable fringing. You can definitely coax some good pictures from it and if a majority, if not all of your photos, are bound for Web sharing, these things probably won't be an issue.