In reply to SomeClimbingGuy:
For the sort of money you're talking about, if you're interested in getting into photography and you want decent quality pictures and a lot of flexibility, you could take a look at "bridge" or "super-zoom" cameras. Big units that look like a DSLR but with a fixed lens and electronic viewfinder.
I have a fujipix one that I bought to see if I'd get serious enough about taking proper pictures to invest in a DSLR - I never did upgrade and whilst the smallish sensor means it doesn't cope so well with challenging conditions, it does take pretty nice shots in favourable conditions and I believe the latest incarnations feature quite a few improvements.
The downside of course is that taking a picture is a lot more hassle than whipping a compact out of your front breast pocket, and so it rarely comes up the rock with me.
For that, I have a cheapish pentax ruggedised camera - it takes fairly crap shots in all but the most favourable conditions, but it came on a decent lanyard with it's own little biner, and it's fully waterproof meaning I can even take it deep water soloing.