Nah. I had a 3.2 megapixel camera not that long ago and it did fine for up to about an 8x10.
My parents like to buy their digital cameras from, believe it or not, the drug store. They apparently have good sales sometimes, including the use of store "points" for additional discounts.
'fine' is arbitrary...
According to this site:
http://www.microsoft.com/windowsxp/using/digitalphotography/learnmore/bestquality.mspx
Based on a standard printer quality of 300ppi, the minimum you would want for a crisp and clear 8x10 is around 8MP.
From another site:
http://www.tfpsoft.com/fun/digitalcameraguide/megapixels.html
How many megapixels do you need? First, determine how big you want to print your picture. Next multiply the number of inches by the desired ppi to calculate the total number of pixels needed. For example, let's say you want to make a typical 3 x 5-inch print:
3 inches x 300 ppi = 900 pixels
5 inches x 300 ppi = 1500 pixels
900 x 1500 = 1350000 pixels, or 1.35 megapixels
Or if you wanted to make an 8 x 10 portrait instead:
8 inches x 300 ppi = 2400 pixels
10 inches x 300 ppi = 3000 pixels
2400 x 3000 = 7200000 pixels, or 7.2 megapixels
Of course, if you don't mind a drop in quality, you can print your portrait at 200 ppi:
8 inches x 200 ppi = 1600 pixels
10 inches x 200 ppi = 2000 pixels
1600 x 2000 = 3200000 pixels, or 3.2 megapixels
If you try to print your image at too low a resolution, it may turn out either blocky or blurry depending on how your imaging software scales up the pixels. Some software attempts to improve the appearance of oversized pixels by blending them with their neighbors, and while this keeps the image from looking blocky or "jaggy", after a point the image ends up looking fuzzy instead.
You can certainly get away with a lower resolution, especially if you don't intend to print or don't ever expect to print anything larger than 4x6. BUT many inexpensive cameras today start at 8MP so this isn't a dealbreaker.
Also, the more pixels you have to work with, the more you can digitally zoom either in the camera or on screen before you have issues.
High MP cameras are not that expensive and 8MP is really a good level for a P&S...you can go lower but cost savings isn't all that large...I mean you go from an 8MP Nikon Coolpix at $80 at Target to getting a new 3.2MP for $30-40 online. I think the over 2-fold increase in resolution is worth the extra 40 bucks.
Again...OP...it's whatever tickles your fancy. What camera do you like. Just about everyone out there will do a great job for you. You'll probably end up paying 80-100 dollars for a basic P&S.
Things you might want to think about:
Actual zoom in addition or instead of digital zoom. Physically 'brings' the image in closer rather that having to lower youy resolution by zooming into the picture using digital methods on the imagine surface or on your computer later...although the higher your megapixel count, the more you will be able to get away with this.
Strength of flash (probably not a major issue unless you take a lot of pics at greater than 10-15 ft distances.
Battery life....again probably not an issue although the early cameras went through them like candy!
Settings....you going to be taking any closeup/macro pics? You want to stitch together panoramas? Most ne cameras have such things built into the camera.
Have fun!