I think you have two choices to meet your requirements

1. entry level SLR (Canon Rebel, Nikon 3100). can be had with kit lens for $600-700. smaller, easier to use than more expensive SLRs, but still will have more flexibility and speed than point and shoots. But compared to point and shoots, will be larger, heavier, more expensive. You can, of course, get bigger, better, more flexible, more expensive (to way more expensive) SLRs, lens, etc. Its a slippery slope (;

2. high end point and shoot (Canon s95). $350-$400, much smaller and lighter than SLR. not as flexible (no interchangable lens), but reasonable senor size and good lens. will operate automatically, but also has enough manual controls that you can play around with more creative stuff.

if you want to "learn" more about "art" of photography make sure you get a camera that allows manual controls.

dpreview.com has extensive (sometimes over extensive) reviews

kenrockwell.com also has reviews and an interesting perspective on photography

Van