I'm a fan of DSLR cameras. They are popular with tourists and travelers and I see them all the time. Recently, I got an Olympus Pen E- P1 which is a smaller micro four thirds camera and the picture quality is great. It was around $300 refurbished and included the detachable lens. It does not have the speed of a DSLR for quick shots and I wish it was faster. But it is smaller and easier to carry around.
I think the disadvantage with DSLR cameras is that they tend to be bulky for traveling. Also I like to be adventurous and take pictures of crowds of people and individuals in a street shooting style and sometimes a DSLR camera makes you look too noticeable. The advantage of a micro four thirds camera is that it does look like a point and shoot camera and it is smaller than a DSLR but not small enough to put in your pocket. DSLR cameras are more refined but if you look at sample shots of these micro four thirds cameras, you may be surprised how really good they are.
Either way, for $500, you can get a great camera with a lens included. DSLR cameras are now affordable for the average working man. You can get the Nikon D40 or Nikon D3000 for around $400 I think and they are great cameras. I think for most people, going crazy and buying extra lenses is unnecessary since the stock lens is really good already and pretty much you need.
Edited by Spareribs - 10/2/11 at 6:51am