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<p>In the days that I was looking for a digital point and shoot, I decided on a Powershot G2 ($800 at that time), as I came across this gallery by Pekka Sarinen, using his G1:(<a href="http://photography-on-the.net/gallery/list.php?exhibition=2&u=&ee_lang=eng"> Here </a>). I thought I should be able to make better pictures than him with my G2.. Yeah right. He moved on to better cameras, and his pictures continue to be good. I have also used better cameras, and my pictures continue to be mediocre.<br>

That said, I would definitely look for a better lens than what the OP mentioned. My revelation was when I moved from a Tamron super zoom (28-200) to a Canon 28-105 zoom and a Canon 50mm 1.4 on an EOS 50 (used mostly slides). The difference in sharpness and contrast we evident, and so was the lack of difference in artistic quality!.<br>

Good Luck, and enjoy your shooting.</p>