Outdated and lacking, yes, but this is the cheapest "real" digicam I've been able to find. At $50 (when I got it), it was just perfect for taking pics for physics labs.
Anything cheaper will most likely be missing at least some of these features: ability to add memory cards, lack of internal flash memory (using sdram instead), the flash bulb, LCD.
Personal review: yes, the photos can sometimes be a bit grainy, and yes, the LCD's small, and yes, the flash can make stuff overly white if you take the picture too close to the object, but it's a decent camera for the $. The video mode, while of inferior quality, is actually kinda fun, and you can fit like 2:30 in 16MB.