I know MOST of you have read articles similar to this, but I figured it's nice to stick this sort of thing out there for any new people who aren't aware of this industry-wide "scam." I definitely fell for it lock-stock-&-barrel when i was back in my "point and shoot camera" stage.
http://www.kenrockwell.com/tech/mpmyth.htm
Make sure you follow the first two links in the first paragraph regarding the NYT writers test of different MP levels. The last section on 35mm (and other formats) vs Digital was pretty eye-opening.
Ken also did a comparison of the Nikon D40 (6MP) and the Nikon D40x (10MP version of the same camera) and ended up concluding that the D40 was the better of the two...especially at the price. He said you'd be better off getting the D40 and putting the saved $200 (now $250) toward a nicer lens.
Just some info for anyone who's interested!