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You're sort of asking what kind of firearm I should buy for shooting animals. Shooting bear is different than shooting p'dogs at 350 yards.
First you're not going to need an $800 5 megapixtel camera for taking snapshots. I own at least six different digital cameras none of which are larger than 3.4 Mb. Unless you're shooting professionally or doing poster sized pictures it's a waste of memory and time...
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Careful, Paul - that's dangerously like saying I don't need a car that will do 150 when the speed limit's 55 or, God forbid, like saying I don't need an UZI to hunt deer... [:D]
The camera I bought for work (State $$$) is 4 megapixel, but I don't use the highest resolution setting unless I want really high resolution, for publication or say to magnify & crop, etc. Just because I have it doesn't mean I have to use it all the time.
[b]AR_Shorty: [/b] Unless size is an issue (i.e. you want a tiny, pocketable camera), if you want something high-end don't overlook the Sony Mavica CD cameras. They are about the size of a good SLR, and they have an internal CD-R/RW drive. They store your pictures directly on mini-CDs that you can drop in your computer's CD-ROM drive for viewing/downloading. You never even have to use any of the connector cables if you don't want to. The one I bought for work was the Mavica CD-400, and it has been great. My wife & I are expecting our first child in November & between now & then I will buy the newer CD-500 - 5 megapixels @ $500+/-. They're not for everyone, but worth considering, IMO.
added: Forgot to mention they also shoot high-quality digital video/audio in MPEG format and store it on the same mini-CDs. Unless you'll be shooting a lot of video, this could prevent you from having to buy a dedicated digital camcorder...
edited to add:
BTW, I LOVE your Sledge Hammer avatar...