Expensive repair after warranty expired

I loved this camera, with the exception of the red-eye problem, until the lens stopped extending in the middle of a vacation to San Francisco. We ended up using a disposable camera to record important family memories on vacation! When we arrived home I shipped the camera to Olympus to discover that the repairs would cost just shy of $160.00. (And, no, I didn't ever drop the camera. It never got banged or bumped in any way.) The message I received from the company was pretty much, "These things happen with electronic equipment". Anyway, I passed on this repair. The cost of cameras is coming down enough to just purchase a new one - - and NOT an Olympus.