Why don't you take a little stroll through the marketplace threads here and find out why $200 is the most insane offer for that model PB.
First, yes, it's dated. I've had mine 3 years and it has successfully ran Photoshop CS, Aperture (though slightly slower than I'd like to deal with), and various other applications. It was my primary computer for 3 years and it wasn't "replaced" but I added a desktop to the equation as I do need more processing power.
I would buy a $650 powerbook over a $650 windows machine any day. That's a fact. I also know I can get $650 for my powerbook today. I would tell the fool offering me $200 what he could do with it.
Bobjob186, Not knowing your computing needs I would say that $650 is indeed on the high end but not at all out of the ordinary. If you can get out under $600 then good for you. If you just need something portable and you have the power you need in a desktop then go for it. It is and has always been quite the workhorse. I would also like to know what video card and what RAM is in there. Is it the 2700 or the faster RAM? I believe in the last model they increased the RAM speed, but I don't recall if that was in the 15" models or just the 17" models.