I too wrestled with what level of camera to get into. I used to be semi-serious about photography but have really drifted away. After a fair bit of research and migration we have ended up with a Panasonic DMC TS2 point and shoot that is waterproof etc for throwing in the pocket etc. which we are very happy with. See this report for updated choices http://www.dpreview.com/reviews/Q311waterproofcompactgrouptest/ .. I also really wanted to replace my previous super zoom also a Panasonic the DMC FZ7 with a interchangeable lens solution. I ruled out SLR options due to size and ended up with an Olympus PEN EPL2 and added the electronic view finder and a few lens. I also chose this cause Olympus offers a real underwater housing which opens up other possibilities. Olympus is still offering a bundle with two lens for $799 which is a flexible bundle for general purposes. All you need to add is the view finder and filters and you are good to go.