That is nearly twice what I would call "entry-level." Under £100 would be more reasonable.
Kodak (£65): click here
Fujifilm (£98): click here
Olympus (£100): click here
All famous name cameras with 3 megapixels or more and all prices include VAT.
For around £160 one could have something like the 4MP Sony DSC-P73 click here
Apart from that, it looks like a very thorough and useful article. Perhaps prices have dropped since it was written.