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Used Rebel XTi or maybe even XSi can be had for $200 or less if you look around and are great cameras.
Of course the cost of DSLR's doesn't stop at the camera, so if you really just want a better camera than your iPhone (or whatever) and wouldn't be interesting in expanding your lens arsenal for different types of shots or learning photography in the future in general, then I'd say a decent Point and Shoot (P&S) is the way to go.
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