I also started with a 110 camera. Got the film developed either at KMart or on special occasions here:
I got a Minolta SLR for my 16th birthday (that I sold to a collector on Ebay a few months back) in high school. Used that camera throughout college for the student newspaper.
My first digital was a Kodak DC20 that I bought used for something like $100
I moved on to the original Sony Mavica, even lugged a couple hundred floppies around Europe for a couple weeks many Springs ago.
When I outgrew the Mavica (while still using the Minolta SLR from time to time), I wanted a DSLR very badly but they were way out of my price range so I went with the Canon G3 which I still have and use as an underwater camera and for situations where SLRs aren't allowed (e.g. concerts) It's a bit slow but takes great pictures, I'll never sell it.
Finally prices came down and I moved on to the Canon Rebel XT. I've thought about upgrading again to the next level but will probably put my money into lenses instead. More bang for the buck. Based on my current patterns I've probably got another 2-3 years before I wear the shutter mechanism out.
I bought my 6 year old son a 1MP no name digital camera for his 6th birthday last year. So I guess the cycle starts again. He's taken very good care of it