Are you fully prepared to get into the world of expensive cameras, even more expensive lenses and a whole load of disappointment?
The financial upgrade side of it is one side of it, but if you dont have the skill set (or the determination to improve) then its useless and you may as well get the compact.
The middle ground is an SLR-style camera - a compromise between the two which will bring your skills on while you decide if its for you or not.
You have to remember that its not just a camera you are buying, it is a system - the lens you get with these cameras isnt as general purpose as the lenses that come inside compacts. The Canon kit lens is alright but you would very quickly want at least two other lenses depending on the style of photography you wanted to take up.
For example, as I am a Canon user, lets say you bought the 350D (a great entry dSLR) and accessories that most people think are desireable:
350D Kit inc 18-55mm lens: £499
1Gb CF card of reasonable quality: £60ish
LowePro Nova 1 AW bag: £30
Velbon CX444 Tripod: £35
Thats £625 already...
Then most people get sick of the Kit lens for one reason or another (too soft, too slow, not long enough, not macro enough) and so most people go out and buy:
Canon 50mm F/1.8 lens (a lens that every canon owner should have): £70
Lets say you didnt want to do motorsports, landscapes or macro shots and just wanted a fairly good walkabout lens, you are probably looking at the Canon 28-105mm, which is about £185
So you would have spent another £255 on glass and STILL not covered as much as something like a Canon S2 IS would cover (but at a lower quality, depending on your skill) as well as having to learn how to operate the camera and how to properly post process your images!
Im not saying dont do it, not by any means but please dont just see the initial low cost and think thats your ticket to superb images, it simply isnt that easy!
