Question: Should I upgrade to a more advanced superzoom point and shoot, DSLR or wait a few more years? 

Here's the deal - I have two small kids. They are my life, and you can tell by the pictures I take with them. Right now I have a superzoom point and shoot, which is great, but I would love to upgrade to something else.

Right now, I'm beyond digital camera 101. I'm not expert or even a knowledgeable armature,

My sister-in-law has already offered to buy the camera, so that wouldn't be an issue. The issue is deciding which camera we should get.

Right now I'm considering two:

1) A newer superzoom points and shoot; essentially a big brother to the previous camera. It has some dumby friendly features, like face detection, which would make it easy for others to use it if I want to be in the picture. Price tag: $350

2) A DSLR; at the moment I'm in love with the Nikon D60. There is just so much more power behind it! I am amazed at how easy it handles, but the cost is making me cringe a bit. Somewhere around $800 for a D60 kit with two lenses (a reat deal considering the AF-Image Stabilization lenses).

We just received our refund $$ from taxes (bless having two kids!), but I don't know what to do.

On one hand, it would obviously cost less to invest in the superzoom. However, it's barely an upgrade and I would get bored with it in a few years. It's lightweight and could be easily taken on a family vacation without an issue. AND other people could use it to take pictures of me...which is an asset. Plus there are so many other places where the extra money could go.

On the other hand, the DSLR (whether I go with the D60 or go for the Rebel) would cost substancially more to invest in now and in the future. However, it would be able to grow with me as I grow as a photographer. It's obviously a valuable investment, and we do have the money.

So I ask you all - what would you do if you were in my shoes? Would you go for the advanced superzoom, step up to the DSLR or just stick with the same camera?

My husband has absolutely no opinion, though I will have to do a bit more convincing for the DSLR.