I still have my first digital camera, a Sony DSC-F1. It is a good snapshot camera, with 300k pixels, 2 Meg of memory (non expandable), and a single focal length lens. I paid about $800 for it four years ago.
I recently replaced it with a Casio QV-3000EX. I enlisted my engineer neighbor to assist me making the best choice. The Casio has a Canon made seven element glass lens, with 3x optical, 6x digital zoom, a whole host of features for special exposure types, panorama shots (you splice pics together to make a panorama pic), and an IBM 340 Meg hard drive for memory. It features 3.3 Megapixels. It will download by USB port, which means I can download about 10 pics each approx. 1.3 Meg, in the time my Sony downloaded a single pic. The reason why 3.3 Megapixels translates to about 1.3 Megabytes is that even the finest quality setting on the camera still has a JPEG compression of about 1:3. If this bothers you, you can use a TIFF format download, and the pics will be the whole 3.3 Megapixels.
It is a real trip when you boot up the hard drive, and see that on the finest setting you have 245 pics ready to be taken!
You can check out some of my pics on the Chris Reeve site on the Gold Coin 2000 thread. Just realize that I am not a good photographer, I was using my son's reading lamps for illumination, and had to compress the photos down to about 100 to 200 Kilobytes so as not to take up too much bandwitdth. So, the pics do not really do the camera justice, but they are still pretty good.
Total cost, including the IBM hard drive, a $400 option if purchased separately, but $200 if bought with the camera, carrying case, 4 AA NiMH batteries, and photo software was $1,000. It is about the size of a conventional 35mm. camera body (when off, the lens barely protrudes from the body). Check it out here:
http://www.digitaletc.com/casio/qv-3000ex.htm
I am quite happy with it. Walt