I have been looking at purchasing my first DSLR and was very close to buying the Canon 7D w/15-85mm lens kit option, which is $2900CAD + tax here in Canada. I began to think about it however, and seeing as this will be my first foray into DSLR photography I have no DSLR equipment. I have been considering instead buying an entry level camera (T1i) and some really good lenses. For the same money that could get me the kit 7D, I could get the T1i kit (18-85mm I think), 50mm F1.4 prime, and either the 24-70mm F2.8L, or the 70-200mm F2.8L. Alternately I could go T1i kit, 24-70mm F2.8L and 70-200mm F4L.
I would really appreciate any suggestions as far as which path might be best suited to a beginner in DSLR photography. I have been mainly looking at Canon camera's - for no particular reason. My motivation is that I can no longer stand the noise and compromised image quality of my P&S.
The one thing I will say, currently owning the T1i, is that if you don't care about video, get an XS if you want an "entry level" Canon. In fact, don't get the T1i anyways. Spend 200 bucks on a pocket cam that takes decent 720p video (the T1i does 1080p but it's too jerky to look good, from my experience), spend the 500 on the XS, then buy 1800 bucks worth of lenses and accessories. You'll be much better off.
Every one of my pro friends says there's no reason to buy a better body than the XS unless you're getting paid good money to take pictures. This is if you're a Canon guy, which I am.