I've had a Sony digital for about 2 1/2 years and love it. 3 megapixel is enough for 8x10s. Here's what I think of digital:
Advantages:
1. You can see the pic as soon as you take it. If the pic of me and Minnie didn't come out, I can make DW retake it.
2. You can delete the ones that didn't come out.
3. You don't buy film
4. I've become hooked on printing my own. I can crop the pic and zoom on the part I want, so what was just an average pic of my kids with a trash can next to them becomes a great shot. I love making my own photo album now with collages of pics and Disney clipart (I scanned a bunch of Dis stickers). It's also great therapy for Disney withdrawals.
5. I think the quality at 3 megapixel is fine, although 4 and 5 mp has come down in price. I end up with a lot of 8x10s in my album now because I print them. Remember, the higher the pixel, the better the resolution, but the fewer pics on your memory stick. I get almost 100 pics on a 128 megabyte memory stick.
6. Email! It's so cool to be able to email pics.
Disadvantages:
1. Still more pricey (I think) to have pics printed for you than 35mm, but not much more considering you have to buy more film. I think it's still coming down in price as well.
2. My camera has a slight delay from the time I press to the time the picture takes (maybe 1 second). I think the newer ones may be quicker.
3. Printing your own requires a learning how to use software like Microsoft Picture It. Haven't used many others, but Picture It does a lot and it's fairly easy to learn. You also need a good printer like an HP photosmart. The ink cartridges aren't cheap, but the quality and life expency of the pics is vastly improved. HP claimes the photosmart pics will last longer than traditional prints.
Overall, as you can tell, I love digital. FYI, I just went to a professional photographer for a pic of me for a brochure, and he used digital. It seems the way to go to me these days. Good luck with whatever you choose!
Eric