A few people have asked me if I really have to have a $500 camera ($700 after the memory card and insurance plan), and honestly, no, I don’t. I have wanted a Rebel for YEARS (literally … my first post for one, that I still have a copy of, is from 2007).
But, I didn’t have to have one for the shots I’m taking. I’m hoping to eventually make print-worthy shots, and ones that I can actually sell. That’s why I wanted the good camera. My Cybershot, though, takes amazing pictures. My Canon does as well.

Both of these shots are straight-out-of-the-camera. Okay, the Canon one is as close as I can get, since I take my pictures in RAW.
See. There’s not that big of a difference! You can’t even really tell the difference between 7.2mpx and 10.1mpx. I can also say that in print, there isn’t much difference between them either.
Now, if you compared them with my 2.0mpx cell phone (Samsung Impression), you’ll see a remarkable difference,
The biggest suggestion I can ever make on a camera is to do your research. Figure out what you want to take pictures of, the reasoning between why you think you need a more expensive camera, etc. Personally, I use all three of the cameras that I have. Well, four, if you count the webcam on my laptop. They all have their purposes. They all have their uses.