There are several cameras I would recommend over the Ixus 120 for your £200 budget but if you want HD video (like you get on the Canon) your options are a little more restricted.
For my money the best one out there is the
Panasonic DMC-FS33. It's around £180, has a touch screen, 720 HD video (same as the Canon), a storming 8x zoom (twice that of the Canon), is higher resolution, has a more powerful flash, manages 4.6 fps continuous shooting (the Canon does 0.8 fps) and has a considerably bigger screen on the back.