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I'm on the hunt myself, and from the info gathered from my digital "shutterbug" friends, I've been steered towards the Canon lines.
I am now price shopping for the best deal on a Canon S3 IS. at 6 MP, Retails for around $399. I'm looking at taking good family-type shots, not pro SLR magazine shoots.
From what I've gathered, the lens is really the deal on getting quality shots. Hence, an 8MP camera with a good lens will blow the 10MP camera with a basic lens out of the water. Kinda explains why you can get a 6MP camera for $150 up to $899. Features and flexibility dictates the price as well.
If you don't plan on turning your shots into billboard-sized posters, you can save some money and scale back on your pixel resolution requirements...
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2009 ML350 (106K) - Family vehicle
2001 CLK430 Cabriolet (80K) - Wife's car
2005 BMW 645CI (138K) - My daily driver
2016 Mustang (32K) - Daughter's car
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