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I have a Canon Power Shot s40 4 MPixel digital camera I bought last year. This is a compact digital camera that takes pretty nice pictures. I even got a good 16x20 print of a picture I really liked.
Digital is good because I can check the picture immediately for problems with exposure or framing and re-take the picture if I want.
I don't have to worry about using up a roll of a particular film before I can use a different type. I can also change 'film speed' (ISO) and white balance on the fly.
Once I get home I can load the pictures on my computer and edit them with photoshop to tweak brightness, color, etc or crop what I don't want.
The cost of taking pictures is almost zero since there is no film processing cost and you can just erase bad pictures.
The camera I have is ideal for carrying around when I bike, in case I see anything interesting.
I take mostly outdoor landscape/scenic pictures. So the drawback to the compact camera for me is the limited focal length, in my case max of 105MM.
I've just ordered a Canon Digital Rebel SLR, a 70-200MM zoom lens and a lens extender to get to a maximulm focal length of about 650MM.
My brother has a Nikon D100 digital with a similar lens and has some really nice pictures.
Problem with SLR is that it can get expensive :-)
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