I would like to add one more disadvantage and one more advantage of an advanced point and shoot. With a P & S, you'll never attain the shallow dof like you can with a dslr, thereby not being able to shoot insects or flowers with the same eye popping results.

On the flip side, try finding a lens or lens plus conversion for a dslr, that will enable you to be able to shoot up to 734mm with an aperture of 2.8. With an advanced P & S that sports a 12X optical zoom, you can add a 1.7 conversion lens and not lose any light. Also, the right lens combo will turn out some mighty fine photos.

As far as live view is concerned, phooey. My camera has a 2 1/4" color screen and I never even turn it on. I'm still used to the old 35mm slr's which never had such a thing.