I think with the point-n-shoot cameras, they are constantly improving them in terms of onboard software/firmware logic and sensor technology. A few pictures with a current camera will reveal striking image quality improvements without the post processing often needed for earlier cameras. Heck the pix out of my wife's S90 often look better than many out of my DSLR Nikon D300.
For the budget mentioned, I know of no new DSLR available that will do what a good point-n-shoot will do (macro, telephoto, mid length).
