I have a Canon 450D and it takes great photos.
Friend has a D40 and a D90 and the 450D competes with it nicely.
Im saving up for a Canon 7D though... I could get it now but dont want to dump $1900 on a new setup lol.
For a Point and Shoot I use a 6 year old Canon Powershot 7.1mp.
If your looking for something Id recommend a Sony at the time, seems photoquality and features on the Sony P&S's outrank the current canon's and nikons of the same price.