Add my 2-cents to the jar... you are becoming richer ! maybe you can get a bigger camera! ha ha!
I'll chime in with the ill conceived idea that more pixels means better picture. that's just marketing plow to get people feel outdated!
Nikon, Canon, whatever good deal you get is fine. Stick with the big names in cameras, this way you will get better service or replacements should anything arise. BTW, my friend has a small Leica and I was not impressed.
Also, evaluate your needs.
Do you want a smaller camera that you can carry easily and still get great pictures. A good point-and-shoot from Canon or Nikon is fine. I especially love the Canon Powershot G10 because of the wide angle lens (28mm equivalent can come handy). There are also very good and cheaper alternatives.
Or is lens interchangeability a must? The ability to change the lens from a wide angle to a tele is a must for me. That why I went with a reflex camera. These cameras are usually more expensive, but offer a better performance when it comes to exposition and focusing... it blows the point-and shoot out of the water!
Don't count out the second-hand market. I bought a superb Canon 20D for less than $300 2 years ago and it was a steal. I still use this camera almost every week. It's amazing but also bulkier to carry around, with one annoying flaw: the sensor is a dust magnet!
So, evaluate your needs, get a good camera for your price range and it will last you for a long time.
Hope that helps
