Camera parts

So grandma told me weeks ago that her camera was broken. She hasn't taken a single photo since her first hospital stay (early January). Now anyone who knows my grandma knows that this just is not conceivable. She once took a photo of the bloody nose she got on vacation. I mean, she photographs everything! She said that something went wrong with it so someone offered to take a look at it and then dropped it on the floor. After that another person was removing the "chip" and broke the door on the bottom of the camera off, but they just clipped it back in place instead of telling her that it was broken.
Cut to last Friday she pulls a Best Buy ad out of her purse with an advertised price of $249 (after rebate) for an Olympus Tough something or other. A camera waterproof to 33ft and built to withstand drops of 5'. It was one of 3 cameras in the flyer. Of those three it was the most affordable, so I thought maybe the damage done to the last camera made her want to buy a bulletproof camera. We get to talking about the features and she says that she liked that one because it is impossible to buy a camera these days without it doing a million other things like going on the internet and making phone calls. What? I guess she is referring to my phone which is the only camera I brought with me on this trip. So I inform her that there are plenty of "plain" digital cameras out there that are less expensive than the one she was looking at and I'd be happy to show her some if she wants. Well, ok, she says. So I show her a few options from Fujifilm and Olympus, all under $100, and she asks again if it does all of the other things? I say no, and she seems surprised by that.
I didn't want to force a decision out of her, so I let it drop. On Sunday she mentions that she might want to buy that camera I showed her, so I pull it up again and leave her to read the user reviews which I had already skimmed through. I said if she wants to look at another model, let me know and I'll find something else for her to consider.
After reading the reviews, she was pleased with that and asked if it will use the same "chip" as her old camera. She said her son-in-law bought her 2 chips last time she went to visit and she wanted to be sure to use them up. I let slide that obvious misconception. Well, I can take a look. So I fetched her old camera and gently slide out the panel where her memory card was. Surprise, the door wasn't broken. I show that to grandma and she shrugs with no explanation. I inform her of the bad news that the xD cards won't work in this new camera but they are incredibly cheap to buy! I show her a $5 SD that will hold 1600 photos. Sounds good. She tells me to order the camera and just one chip. So I do.
At lunch, she tells me that she will probably just keep using her old camera until she uses up those old chips and then switch to the new camera. Wait. Wha....what?!? It works?? I am sooo confused!