And so the DSLR wars continue. The Canon EOS Rebel T2i ($900) is the latest salvo from Canon, offering a number of improvements over the T1i it replaces. Highlights include 3.7fps shooting, ISO up to 6400, an 18-megapixel CMOS sensor, 1080p video at both 30 and 24 fps with full manual exposure control, an iFCL 63-zone dual-layer metering system, a 3-inch LCD, support for SDXC memory cards, and a 9-point AF system. If you're already a Canon shooter, or simply want to save some money, the T2i also comes in a body-only package for $800, giving you $100 to put towards a better lens than the middling 18-55 kit glass — in fact, it'll pretty much cover Canon's base 50mm f/1.8 prime.
While we're not sure about its "background defocusing" feature — seems like opening up the aperture would do the same thing — the new Olympus SP-800UZ ($350) is a strong contender otherwise. It sports a 30x optical zoom, a 14 megapixel CCD sensor, a 3-inch wide-screen LCD, 720p HD video recording, CCD-shift image stabilization, SD/SDHC compatibility, Face Detection AF, and HDMI output, all crammed in a compact, stylish body.