I have a Pentax Optio 430RS which has served me well over the last 2-3 years. I wanted something that was small enough to keep in a pocket, but not so small that it fits in a mint tin
The small form factor makes me more inclined to bring it with me, and as a result, I've accumulated quite a few pictures since having it. I know that I wouldn't have taken nearly as much with a Digital SLR, although I'd prefer the SLR for astrophotography. Not sure whether or not I want to eventually buy a SLR or a CCD camera when I decide to take the plunge.
Since I'm fortunate enough to own Macs, I use iPhoto to organize them.
-tacks