Originally Posted by Grimm
there really is no reason to buy anything more expensive than a $100 or so P&* camera.
I used to be one of these people. A long time ago I went through 2 very cheap digi-cams before I bought a decent one nearly 4 years ago. (Canon S400)
That led to me getting a lot more serious about photography, which is why I own a DSLR now, but that'* besides the point.
The cheap cameras will be sufficient to begin with, but once you realize the limitations you will get with it, then you will want to upgrade. Slow shutter speeds, large shutter delay (which is a huge cause of blurry or poorly composed photos), slow focusing (bad for action), and inability to take a decent photo in any condition but a perfectly still flash shot, are all the things that you will get in a super-cheap digi-cam.
Cheapo camera (Kodak)
Middle of the road camera (Canon S400)
Digital SLR (Canon 300D)