Hi RQ it really depends on what you want to photograph and what you want or expect to do with the files (use on computer, or print into prints) you can now find something that will fit even a tight budget. an example nikon P510(can also find version by canon,fuji,panasonic,olympus etc) I have a lot of pro equipment that I use for my Photography. but I wanted somethng to just toss in the car and have with me in case I came across something and did not have to say, wish I had my camera here.. (not always practical to keep my big gear in the car) but I wanted it to be sharp enough to at least be able to make a 8x10 or even a 11x14 decent print incase I found something I would like to enlarge.
I ended up with one of these bridge cameras. kind of a bridge between the small instamatic point and shoots and the semi/pro cameras
it has a lens range of 24mm to 600 or 800mm lens. so it will give you the range your missing with your 70-200 lens, and the sharpness is not that bad. I was fairly impresses with it,
they are not perfect but they are a very nice compormise as they give you a very nice range of lenses to shoot ( for me I shoot a lot of wildlife so having a lens that went beyond 200mm was a plus as the smaller ones by there very nature being small and thin cannot produce a lens of that kind of range)
anyway thought I would throw that out there for you. it just might fit what you need. of course like anything, the secret to getting great sharp images out of them is using good photographic technique.. using high shutter speed and or tripod. but hand held it gave pretty good results as well, but using the telephoto part, you really need to have it as stationary as you can.
but as I stated earlier, it really depends on what you want or expect to accomplish with it as to what group of cameras would be best for you and even on a fixed budget one can usually find one that would work.There are a large variety of types out there, even more choices than ever before.
I bought a new mid price digital camera late last year to replaced my (been fixed to often) SLR Pentax ME. The dilemma is I miss my lenses on the SLR, especially my 70-210. The digital is not capable of additional lenses. So do I try and trade a couple of "heirlooms" Argus's for a new camera body, or hope I hit the "Lotto" so I can buy a digital with mountable lenses. Money is the big object, living on a fixed income....sucks!