To be fair, You want to replace a $400 camera with a $200 camera.
You wont be able to do that and still have some of the features you now have.
Your camera has a viewfinder in addition to the LCD screen, and it has manual controls (Shutter Priority, Aperture Priority, Full Manual).
A $200 camera will have none of those features.
But it will have a lot of features you present camera does not have.
If you want a 8X optical zoom like your present camera, you will have to pay a bit more than $200 (about $240).
Take a look at what $240 will buy you:
http://www.steves-digicams.com/camera-reviews/canon/powershot-elph-310-hs/canon-powershot-elph-310-hs-review.html
..
Hello:
I'm in the market for a new digital camera. My old Olympus C-720 camera takes great pictures, especially in macro mode. The only problem is it eats batteries like crazy (even with the rechargeable ones) and the memory card's capacity is only 64MB. I'm looking for a new camera that has the same great features, but can hold more pictures and I don't have to carry extra batteries wherever I go. My budget it up to $200.
Thank you!

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic