Number six on our list is the Canon Rebel XS (1000D).

No DSLR is a compact per se, but I wanted to include one compact DSLR on this list. My thoughts immediately went to Olympus, who recently announced the E-620, easily the most fully featured small DSLR available today. The E-620 packs in-body image stabilization, a fully articulated LCD, seven point autofocus (5points cross AF sensor / 7 points twin AF sensor), and more into a body which is slightly smaller and lighter than the competition. Nikon, Sony, and Pentax also make fine "entry level" DSLRs.

Any of the those would be a great choice, but my personal pick would be the Rebel XS for the following reasons:

• Costs just $510 including a sharp, image stabilized standard zoom lens.
• Can use an inexpensive, well performing, compact, light, and fast autofocus prime at the 35mm equivalent focal length (EF 24/2.8).  Combine that lens with the even lighter, less expensive and faster EF 50/1.8, and one has a terrific two prime kit covering the traditional 35mm and 85mm views.
  
• Offers good noise performance, dynamic range, and viewfinder size compared to the competition

With the Rebel XS, Canon released a model which is slightly underspecified in nearly every way compared to its sibling, the Rebel XSi. Where the XSi has 12MP (and now the Rebel T1i announced with 15MP), the XS has 10MP. Other features cut include spot metering, viewfinder magnification (.81x vs .87x), highlight tone priority mode, ability to take a wireless remote, and burst speed in RAW (1.5fps vs 3.5fps). Importantly, the Rebel XS also sheds a full $200. The XSi kit costs a full 40% more than the XS kit (same lens) at the time of this writing.

Other than a slow burst mode in RAW (1.5fps) and lack of spot metering (both of which I can personally live with), the Rebel XS has all the basics covered very well.  At $510 including the EF-S 18-55mm IS, it is a bargain and my current pick amongst the small DSLRs.