The camera debate of 2010

J gifted me with an awesome camera this past Christmas. Being that I'm such a picky person it didn't pass my test so it went back to Best Buy. There are a couple of a reason why it was returned: 1) I want(ed) a dslr camera and it wasn't, 2) the camera was too expensive for a point and shoot & 3) I won a $200 Best Buy card that I wanted to add on to the money he spent on the camera to begin with.

Fast forward to nearly 4 months later and I still don't have a new camera. I'm sure you are wondering why. Well you see I'm not very easy to please and I'm very indecisive on top of that. Do I really want a dslr that's a bit on the bulky side or do I want a very portable p&s? Am I really going to lug around a dslr when we go out with Kayla so I can be all mamarazzi and whatnot? Will I end up sucking it up and spend twice the money 'cause I want a trusty p&s and still want the dslr?

I have several options here:

1) forget about the dslr and just buy a p&s

2) buy a p&s and scour Craigslist for a used dslr

3) buy a dslr and don't spend too much on a p&s

4) buy a nice p&s for now and save up for a dslr later

I really want to buy a new camera this weekend just 'cause. I've had my p&s for years and it doesn't take the best pictures in the world. I don't need best but I want great. Having Kayla made me realize that the only thing I can really look back on are pictures. This child grows so fast I can hardly remember what it was like having her the first couple of weeks when she was born.

Here is the p&s camera I'm considering and here's the dslr. I'll take this one if I could!

What would you do if you were in my shoes? Would you get a dslr, both, or just a point and shoot? Oh, can I also add into the mix that I don't want a separate video camera and the p&s I want has HD video.