I can chime in a little here. The question you asked is a real open ender. It really depends on how willing you are to spend time learning how to use the camera and learning post-shoot digital photo editing.
Some good resources-
http://www.dcresource.com/
http://www.dpreview.com/
I personally didn't want to put in all the effort associated with a true Digital SLR (Single Lens Reflex aka a full body camera). I bought a canon powershot S3 IS because I beleive no matter what you need some glass and some non-digital zoom. The current version would be the Canon SX1 IS.
Here are some of my fav pics taken with the S3 IS-
