No I don't dislike D40, I just prefer other models (but it's me personally, don't take this as generalisation).
If you asked me, I'd get D40 over point&shoot based from picture quality alone.
But yeah, I don't like D40 (did I just say I didn't dislike D40?
) because of these factors:
1. Too damn small it feels awkward (no problem if you actually like small form factor)
2. Need AF-S lenses, means you're missing lots of nice AF lenses out there (no problem if you only wanna use the kit lens or you don't mind using AF-S only). Some people think they can "get away" with D40 + some MF oldies, but for MF works, it's better to use either D80 or D200 or D2X cause they got bigger viewfinders.
3. Not enough hard buttons. I prefer a camera with aperture wheel on the front and shutter speed on the back so I can easily change them. I also prefer easy to access ISO and white balance (don't really need hard buttons for image quality). (but again, no problem if you shoot mainly in P/auto mode, or you don't change aperture that often).
4. Too damn small
5. Overly small for a DSLR
6. Need size enlargement.
But I reckon one of the BIGGEST, unspoken advantages of DSLR over Point&shoot is... behold... the shutter sound.
Seriously, it gives you a much better feeling when you click it and hear that real shutter sound instead of that wimpy 'click click' of point&shoot (even worse, the artificial shutter sound from P&S speaker).
Different camera got different shutter sound too. eg. The D200 got a louder, more satisfying shutter sound compared to cheaper sound of D80. But if you don't like louder & more solid sound, I guess the opposite works for you. I reckon you go to nearest shop and double blind test the shutter sound, see which one you prefer.
And you asked why I like D50? Well, it's bigger. Takes AF lenses. But still no front wheel though. Don't cross D70s just because they are old. teamed with AF lens, D70s is still a joy to use.
The cheapest Australian camera shop that I've found so far:D-D-Photographics
Yes, it's a "grey" market item, but at least they take care of you. If it's broken under warranty, sent the camera to them, they will take care of it (they will ship it back to whereever they got it from for you) and you don't have to worry about anything.
And the guy I talked to there, was much better than the majority of sales assistants I talked to at brick&mortar shops. But they don't have D50 or D70s though, I guess they are getting discontinued already?This shop
here got a D70s, it has great prices too, but a bit more expensive than D-D. But at the moment they have D70s body for AUS$ 935.
But those 2 shops don't really have display stuffs; since you can pick up the item yourself, basically you only go there once you've made up your mind and ready to buy.
If you're not so used to Nikon interface yet or own Nikon lens yet, try Canon too, who knows you like it.