If they enjoy their "complex" Minolta, you may wish to think about getting them a digital camera with manual controls for exposure and other settings. They can still leave everything on Auto initially if they want, but I bet they will appreciate those manual controls.
The Canon A510/A520/A610/A620 would be my recommendation as well. (They're all pretty much the same camera with progressively higher resolutions and prices, so you can pick one of those based on your budget).
A camera with a big lens will have more zoom AND better image qualitu (as you can see at
http://airshowfan.com/guide-to-digit...as.htm#dontbuy ), and your parents may appreciate the 35mm-like form factor:
http://airshowfan.com/guide-to-digit...igital-cameras
With your budget, I think something like a Fuji S5100 would be perfect. It's relatively small for its big lens, has a 35mm-SLR-like form factor, has great image quality, is an excellent point-and-shoot, and also has the option for manual controls if your parents want to use it like an old SLR.
I hope that helps.