I've been able to handle one of these off and on for several weeks now, and I'm very pleased with the handling and features for such a value price.
Compared to the older Alpha 100, this camera is a bit smaller, but not so much that a person would find it "too small" for their hands. It uses the same, full sized battery as the other current Alphas, including the now top-of-the-line Alpha 700. Additionally, it can be made bigger by adding the vertical grip (although this might make it a bit too large for some).
Typical of the Alpha series, the LCD is very good quality, and, when set to the larger type size, easily readable by older eyes.
Autofocus speed has definately been improved over the A100, and all performance levels seem to be at least as good, most improved to various degrees (but you'll notice the AF most).
Features that are lacking are a wireless remote option; depth-of-field preview; and a quick AF/MF (autofocus/manual focus) button or setting. Then again, there aren't any other cameras this inexpensive with a 9-point AF system, built-in anti-shake, and 10 megapixels! You should value the anti-shake as at least $100 bucks for every lens you plan on purchasing!
A decision to make might not be which camera brand to buy, but which model. The Alpha 300 will have the same features as the 200, but will add the articulated LCD with Live View, for an extra $100. Personally, my experience with this feature on the Alpha 350 says, to me, it is worth $100. You get the same 2.7" LCD, but now it articulates. The Live View works great (no autofocusing lag like other brands), and allows a live, digital crop of 1.4x or 2x. [The Live View feature does have one drawback the way Sony uses it. It only shows 90% of the entire image].
All-in-all, this is a fine camera at a GREAT price!
Here's some accessories you might find useful:
Sony PCK-LH2AM LCD Protector Cover Type for Sony A200 DSLRSony VG-B30AM Vertical Grip for Sony Alpha A200 DSLR