I have the Nikon 1 J1 and love it! Here's the link to a review I actually posted here a few months ago -
http://victoriaonvacation.blogspot.com/2012/05/camera-review-nikon1-j1.html
Since the review, I've become even fonder of my camera, experimenting with shutter and aperture priority modes and different ISO settings. The Iso range on the camera is up to 3200, and then there's also a Hi1 ISO option which is good for late night pictures.
The camera takes beautiful pictures in all ranges of light... the only attraction I've had quite a bit of trouble on is Pirates of the Caribbean (that's a difficult attraction to shoot, anyway, with all of the low and red lighting). I've been especially pleased with fireworks pictures - all which I've been able to take manually without a tripod, though I'd like to try long exposure fireworks shots with tripods because these boards have intrigued me.
The lowest I've seen the camera listed is at $595 and that is with only the 10-30mm lens (though I must admit, I've stopped looking because I don't want to become frustrated with the price I paid). I bought it at Target for $595 and they had a bundling special with the 30-110mm lens for $100 (normally $250), so I added that. I also purchased the deluxe camera case that they sell at Target made specifically for the Nikon1 (love it because it's small and easily accessible... actually screws into the case so you don't have to remove it to take pictures) and it needs a high speed memory card, which is around $30, give or take depending on the brand.
For your considerations...
Quality features - This camera is really high tech with the ability to take Hi-Def video while taking still shots. Other features like "Smart Selector" (takes a series of shots and chooses the best - eliminates closed eyes, movement, etc. for the best picture) and "Continuous" (just focus and press the shutter and it takes a continuous loop of pictures so you don't miss any of the action... I found this to be particularly helpful when having my father take our picture, since he doesn't have the best timing) shooting modes are helpful.
User friendly - The large LCD screen makes it easy to navigate the menu and adjust settings. There are very good auto modes, but personally, I like to adjust the settings myself - though one could easily shoot only in auto and have wonderful photos. I'm not too keen on handing my camera over to just anyone, but when I have, the shots have been the most successful outdoors in sunlight - low light requires a steadier hand unless you want to bump up the ISO. It's not really a kid-friendly camera. I wouldn't give it to a child.
Value - You get what you pay for.... which is the compact size with ability to shoot high-quality images. If you just want a DSLR camera, a Canon Rebel would be less expensive and on-par with quality, but quite a bit bulkier (though weighs about the same, depending on the lens you use).
Convenience - That's what I love the most about this camera (and the deluxe case). It's small and I can wear it around my body like a cross-body purse so it will always be handy or tuck it away in my purse. The best thing about the case is that all you have to do is unsnap the cover and flip it open - no need to remove it from the case and juggle the case around while shuffling to get your shot. Love it!
I definitely think the Nikon1 is worth the money, but honestly, it's really pushing your budget. I think you might want to investigate some of the Nikon Coolpix cameras like the P510 or L810. I'm also curious as to why you want a DSLR - what photos will you be taking? Of your family or of scenery? Are you interested in photography, or do you just want high-quality photos? Nikon makes great Point & Shoot cameras (recently got my sister the AW100 which is waterproof and shockproof and has preset modes for fireworks, underwater, portrait, etc. so she doesn't have to adjust any settings) that take high-quality images, but don't need to have the settings adjusted or require you to focus. If you aren't going to take advantage of manual and advanced auto focus or shutter and aperture priority on a DSLR camera, it's basically serving as a jazzed-up point and shoot.
Here are some examples of photos the Nikon1 takes:
With 30-110mm lens:
It Really is You! by
vshingl, on Flickr
DSC_6822 by
vshingl, on Flickr
"Wait a minute - this is MY dream!" by
vshingl, on Flickr
Fireworks (10-30mm lens) -
DSC_1540 by
vshingl, on Flickr
DSC_2329 by
vshingl, on Flickr
People (10-30mm lens) -
DSC_5271 by
vshingl, on Flickr
I whip my hair back and forth! by
vshingl, on Flickr
DSC_5293 by
vshingl, on Flickr
Indoor -
DSC_6529 by
vshingl, on Flickr
DSC_6579 by
vshingl, on Flickr
Outdoor -
DSC_6563 by
vshingl, on Flickr
DSC_6912 by
vshingl, on Flickr
