This is very interesting, I just went through 2 weeks of research about this very same subject.
For under $200 your best and main focus are pocket HD camcorders. The best out of all of these is undeniably the Mino Flip series. The mindHD($169 on amazon) or Ultra FlipHD($179) are the best ones of these. Check out youtube for videos of these products and videos recorded with the cameras.
If you want to go cheaper with only SLIGHT reduction in video quality, check out the Creative Labs VadoHD ($124 on amazon). There is such a slight difference in quality that it is almost indistinguishable. Though, it has more vivid colors compared to the Mino cameras, which some like and some don't.
Those are your 2 best choices for these pocket video cameras. They both have GREAT quality for the price ($150 or less). The kodaks seem to have hardware issues and quality is not up to par compared to the others. The new kodak, the zi8 has built in motion reduction, but from checking out samples on youtube its almost no even worth it to use it lol.
A lot of people mention that there are issues with blurring when you move the camera quickly.. but really.. how can that be a complaint given the lens size? Even with digital reduction you still can't fight it. Best solution is to either have a steady hand or record with a tri-pod.
What did I choose in the end? A digital camera. Yes.. a digital camera. Canon has this new camera out, the SD780is that records 720p video. I checked 10 videos out on youtube for the video quality and it performs great even in low light situations, and the image quality is fantastic, so its a 2 for 1 really. I got it for $219 on amazon. I wanted to upgrade my current digital camera anyways so it all worked out in the end for me.
Good luck, its a tough decision!
Watch in HD:
These cameras' microphones are really only made it record decent sound within 20 feet of the camera. Your best bet, if you wanted good quality audio, is to get the new kodak zi8 which actually has a mic-in port. You can carry around a shotgun mic or get one of those good quality clip on mics and attach it to a shirt.
For everyday stuff, the mics on all the cameras I mentioned would suffice, but if you were to really record guitar playing then I suggest micing your playing separately with a decent audio rig then syncing the video and audio later on.
Sony Webbie is the only one I heard of that can be used as a webcam, but reviews on the units are pretty bad. Really, just sang a logitech webcam on **** for $20 lol.