Manufacturers have basically stopped making cameras with viewfinders. They are only on the cheap-cheapest of models, or on the expensive enthusiast cameras. Canon I believe makes two budget cameras with a viewfinder: the A1100 IS, and the SD1200 IS. The SD1200 is smaller; maybe too small for your FiL. I would not consider either camera as durable. Canon does make a high grade compact with a viewfinder, the G11, but it's considerably larger (it won't fit in a shirt or pants pocket), and expensive at approximately $450.
My Father-in-law has asked me to help him pick out a new point and shoot camera to replace his old one. His requirements are: highest mega-pixels possible, small in size to fit in a pocket, between $200 and $250 dollars, but most importantly, it needs a viewfinder. He hates using the LCD only and his fingers are too big for a touch screen display, so those are out, and a viewfinder is really needed. Of course it needs to be durable and able to take a moderate beating too. Any suggestions, anyone?