Camera for 10 yo grand-daughter, under $200

I highly recommend something from the Canon G series. You can pick up a Canon G2 for about $40. Higher numbers are a bit more. They have a nice viewing screen and are easy to use as well as producing excellent pix. Also, very sturdy.
 
Second. Confirmation that DSLRs from several model generations back are likeliest to hit the budget and provide building advantages. In the Canon tribe, fingers point to the D10, D20, with a possible reach to the D30, or to the lighter Rebel series, around the XSi, XTi. In the Nikon tribe, a lot of fingers pointed at the D40/D40x/D60 and the D3100. Pentax and Sony also sneaking in here. I’m pointing Canon simply because extended family in area has Canons that can be lent in future.
The Canon 10D wouldn't be on my shortlist. Tiny screen, doesn't work with EF-S (crop) lenses. Also, the 10D, 20D and 30D are big clumsy cameras. The Rebels probably are better suited for a 10-year old. Also, it offers you the change to get a newer generation camera.

I by the way don't agree that DSLRs from several model generations back are likeliest to hit the budget. I think mirrorless (Olympus/Panasonic or Sony) are.

Sixth. Other mirrorless, ILCs, 4/3 etc, like Fuji xe1. Nikon v1, Sony nex3n, Sony nexc3. Attractive, but all above budget used – as of this date.
You stated a budget of US$200, as I noted before, Adorama sells a Sony Nex C3 for just US$159,- a bargain imho and well within your budget.

But you're right that number one is to talk to her. Might not be that fruitful, but at least you may find out what she really doesn't want.
 
Oh, one other thing is to not forget the Pentax DSLRs. They're often better specced than Canons and Nikons at the same level often with more generous with manual controls, compact, and different colours to choose from (if she's into that kind of thing). The K-R, K-X, K-M are potentially worth a look.
 
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