I wouldn't say photography is one of my hobbies but I would like to be able to take some decent photos while I'm on holiday.
Here's a thought; you want good quality images, liveview, as it's not a hobby, the possibility of upgrading might not be that high up the agenda, and you want a feature packed camera that you can use when on holiday?
I'd strongly suggest an Olympus E620 (with either the very worthy 14-43mm kit lens out the double kit if you require telephoto ranges - don't forget, Olympus is 2x cropped, so all focal length stated are 2x in 35mm equiv.)
The IS in built in body (so IF you do upgrade, any lens attached to it will have up to 3 stop IS). The camera comes with a very impressive array of ART filters, easy to use and to top it off, small, light and easy to bring around when on holiday. (I travelled around Malaysia, HK and Macau with the E420, a light camera REALLY pays off when on holiday).
By the way, until the end of the month (possibly extending till mid-March), any E620 camera purchased, is entitled to a free batter grip and a spare battery.
www.cameralabs.com
Have a look at the reviews, and reviews of other cameras you might be interested. I know most of us will suggest the best camera you can have for you money but it'll be much wasted if you are only using it for holiday and no intention for say e.g. Sports photography (which the 40D is great when paired with a fast lens).
Again, as suggested, head out to a local camera store and play with all the cameras suggested and see which suits you best.