My Canon PowerShot S2 IS digital camera got the dreaded "Black Screen" & Canon wants $175 to fix it.?

Looks like you are not alone on this one!!! It seems to be a common issue. You should be able to pickup a used S2 for less than $175. Anyhow, at the link below, people were having success calling the service center and getting their image sensors replaced if there was no damage to the camera that might have caused it. Call the for a supervisor in the camera/video department at Canon (1-800-828-4040). Scroll down to Diane G's comments, I think they were the most helpful and did get an out of warranty camera repaired for free (they probably had to pay shipping one way).

Canon S2 Is Black Screen

The S2 IS is not prone to the defective CCD issue that the S1 IS is. Have you tried the DISP. button on the back of the camera - press it to toggle through 3 or 4 menus? If the MENU icons show but there is no image, then the camera needs repair.

I think it would be wiser to buy a new camera, because the 5MP, S2 IS is now quite outdated.

Have a look at one of Canon's newer super zoom cameras...the 10MP, SX10 IS (20x optical zoom) would be my pick.