I've enjoyed photography for many years. My first SLR was a college graduation gift from my folks back in the early 80's.
I went digital many years ago. I loved being able to take lots and lots of pictures without worrying about the cost of the film and processing. I also like that I can get some sense of the quality of the picture taken right away.
These days I use two cameras: a Nikon D70 digital SLR and a Nikon Coolpix L15 point & shoot.
I especially like the digi-SLR for the exposure control, the ability to use much more powerful flash units, and the complete lack of shutter delay (I HATE shutter delay). It also just feels better in my hands. I use my mid-range telezoom much more than my bigger telezoom. If I were to purchase again I'd probably go with the the D80. The drawback is that it is kind of big and can get in the way when active.
Hint: best SLR camera strap: Op/Tech Pro Strap ... a great strap!! (not to be confused with the Super Pro Strap intended for medium format cameras.
When I need a more compact camera I take the L15. It is tiny and uses regular (or lithium) AA batteries so that I don't have to worry about charging batteries on longer camping trips. The L15 gives great pics, but I have experienced shutter delay (did I mention that I HATE shutter delay?).
My view on photography is that so long as you use a good quality camera (brand name), the person behind the camera has more to do with the quality of the pics than anything else. I urge folks to use a tripod too!!
I'll recommend use of Adobe Photoshop Elements as a great product to download, store, organize, and edit your pics. I've used it for years and really like it. Tons of editing power for a very low price.
If you want to share pics with friends and family, then I'll recommend
http://www.smugmug.com and a great web site for creating galleries and displaying your pics. Folks can view, download (if you choose), and even purchase prints. It costs about $40/year, but the service is great, its VERY easy to use, has not pesky adds, and I never have to worry whether it will be around next year (most free sites seem to only survive for a year or two).