I recently upgraded from a good quality Nikon 950, that I categorized as a 'point & shoot' primarily because of its' size. At 2 megapixels it does what I want it to to do on a daily basis - mostly photos on various member boards for technical or historical question illustrations & some e-mail pics. I rarely use the finer, higher resolution settings, because a normal VGA format is best for posting or sending e-mail. On the high resolution settings it will produce near photo quality 5X7" and acceptable 8X10" photos. I almost exclusively use the LCD screen instead of the viewfinder - even in bright daylight it shows me what I need to know about the photo in progress.
I recently purchased a Minolta DiMAge 7Hi. A few years ago it was Minolta's hi-dollar tip-of-the-technology camera. At 5 megapixels, it handles finer detail to my complete satisfaction.
As for SLR: Spending the bulk of my photographic career using a 35mm 'REAL' SLR that allows you to see directly thru the camera lens, I've decided the Digital SLR is simply a technological feelgood. You really don't see thru the actual camera lens with a Digital SLR, but view an electronic image thru a viewfinder - same as on your old camcorder. It's simply a tiny viewscreen with an eyepiece. You see the same thing with the bigger LCD screen, and the LCD seems to consume much less power.
From what I see of current model SLR's, their main advantage is a bigger, faster, higer resolution lens; the "SLR" title is a misnomer bordering on technical BS - I rarely use that feature on my camera, as the LCD screen does just fine.
In making my decision, two other factors led me to choose Minolta's older model: Compact Flash use and power source. Advances in cell phone and PDA technology have given the camera industry better battery life then ever before. My Old Nikon ran great on the NiMH batteries of the day - easily 200 frames, even with some flash use before I had to switch to the back up set. AA's on my 'new' camera are the biggerst reason that 2-3 years ago Minolta's newer models began to use LI ion batteries, with greater storage capacity. In the meantime, NiMH batteries today (vs 3 years ago) are of sufficiently greater capacity at 2500MaH that all I need for a weekend of travel is 2 extra sets of AA's in the camera bag 'just in case' - usually the 3rd set comes home untouched or ends up in the Walkman. I'm resistant to the idea that if I want a back up battery for my camera that I need to buy a hi-dollar, specialty LI ion battery that only fits my camera. At $50-80 for the Lithium Ion battery, vs 2 extra sets of 2500MaH AA's at under $20, the dolllar savings be applied towards gas or lunch money...
The final questions are simply this: Will a newer point & shoot do what your old one won't or do you crave the newer, higher megapixel camera just to keep up with your friends? Writing speed to the digital media is quicker in newer cameras, but how much sequential frame work will you do? Are you willing to plug in that dead camera for anywhere between 15 minutes and 2 hours just to recharge it, or are you willing to spend big to get a back up proprietary battery? Do you want an SLR just because the 'pros' in the responding crowd say it's the way to go? Chances are that you already have adjustments for white balance, spot vs area metering, TIFF or RAW file settings, fill-in flash capability, digital zoom ? do you require this stuff on a routine basis? Do you have an inventory of Compact Flash cards already, or is storage media not of a deciding concern. For me, AA batteries and compact flash cards were the deciding factors in choosing the right camera having a better quality lens & more bells & whistles.
Bottom line is, if you have experience using 35mm SLR cameras and are jonesin? for the ?good ol? days?, then go for an SLR. Otherwise, todays? p&s camera can capably do what you need done and can react faster than you can. Many of today?s p&s cameras have manual settings so you can control either aperture or shutter speed, and many other features not available in a camera of a decade ago at any price. Most families I know just want some good quality pictures & want to concentrate on ?capturing the moment?, rather than tinkering with the camera. Me? I grew up in the pre auto-focus/zoom & auto-exposure era, so I?m used to controlling the destiny of my photos the ?old fashun? way.
Go to http://www.steves-digicams.com/ for a wealth of information on cameras, features and even sources for price comparison.