One might be able to make a valid case for the Ti500, but the R8500 is clearly superior in pretty much every respect against the Ti200 IMHO.
Radeon 8500, faster then the GF3 Ti200 with a better feature set pretty much across the board, along with numerous little extra's in the way of superior FSAA visual quality, better DVD playback, better 2D visual quality in most cases, better TV-Out capabilities, plus your get DVI-Out, TV-Out, and HydraVision by default. etc.