i do not agree with the statement that the number of pixels has very little to do with the quality of the pictures. of course, you can have an 11MP camera and the pictures will look awful if your optics suck. however, great optics with low resolution will not get you far either. you obviously need both. furthermore, Mike's post seems to suggest the DC200 has great optics. i doubt very much that the DC200's optics outperform the 3-5 MP cameras from Canon, OLY, Sony that were mentioned as alternatives in this thread.
of course, when debating resolution you also have to take into a account what you are looking to do with your pictures. a 1.3MP camera is more than adequate for web posting, and viewing on TV or computer screens. it also makes for decent 6x4 prints. in print, anything beyond that size quickly becomes problematic. also, you have very little wiggle room. let's say you shoot some nudibranch but did not get quite as close as you would have liked. you can obviously zoom in, crop and effectively enlarge the relevant part of the photo in an editing program. however, an enlargement of your nudibranch even if it is only printed on a 6x4 will look pixelated because you just do not have enough to work with with a picture file from a 1.3MP camera.
Bottom line is the DC200 is way overpriced for what it offers and you won't be disappointed by the optics of the olys you are considering.