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Digital SLR is a very complicated subject. Basically the larger the sensor ( CCD device ) the more expensive is the camera. A sensor the size of the film is very expensive to make. The camera needs to 'crop' the picture for smaller sensor and it affects the 'angle of view' and focal length etc.
I am not really into photography but the advantage of SLR is you get what you see from the view finder. Easy to change lens and take picture at low light condition etc. I have a P&S and my wife uses a DSLR and you can tell the difference in the quality of the pictures, especially in low light condition.
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