I recently went through the same research looking for a small high end camera to take great low light and action pics of my kids. This is what I got: Panasonic Lumix DMC LX 7 - So far I love it! Super fast lens, not much bigger than my iphone and amazing low light capability:
A couple of things you guys may be underestimating. -The steep learning curve of a dslr. A Nikon D7100 comes with a 355 page (all english) user's manual. That ought to tell you something. -Have a plan for sorting, editing and storing your digital photos. I can't believe how many photos some of you say you take just for fun. That doesn't sound like fun to me. -Most importantly, it takes a good photographer to take good photographs. A bad photographer will always take bad photographs no matter the camera.
A. You can still use it like a point and shoot, put it in program and shoot away, or use it in manual and learn to control it, you know be smarter than the camera. b. very important, and hard drives are like racing, it's not if you'll crash it's when, make sure to back up regularly. I usually shoot 70 to 80K images a year. C. This is very true, though I suck with an iphone, I'd rather use my D3s.
External hard drives are a god send. And if you really want to secure the images back them up to at least two drives.
Nikon 3100 or 3200 would be perfect for this... Right price range, and they take great shots. 18 or 24 MP depending on version you get. Entry level DSR... It will be my next camera purchase...
IMHO, anything beyond 12MP is a complete waste unless you are a professional or need to blow up poster-size prints. 12MP will get you a STUNNING 13x19" print if you have a photo that you really wanted to showcase. However, how often does that really happen? Thankfully, the MP wars seem to have abated in the DSLR world over the last couple years, with only a handful of models going beyond 24MP. Quality, not quantity.