I picked up a Kodak 6MP refurb with 3X optical zoom for only 139 and it's not interpolated. As the swing to digital accelerates, ecomonies of scale kick in and you'll find some deals out there.
My advice? Stick with names.
Am I the only one to notice a jump in the Pixel count of digital cameras? It was not long ago that I bought my first camera with 2mp count. This was just an entry level device but still considered reasonable. Upgrading to a 4mp camera was quite expensive but I did eventually do it. But now when I see cameras advertised the cheapest are 5 to 6mp. I am sure technology has not accelerated that much in such a short time (measured in months rather than years).Are they using a different measurement for the pixel count now? Interpolation comes to mind.