The image quality produced by DSLRs is far in advance of anything a P&S can do, and in many cases, it now exceeds what film can do, especially at greater than ISO400.
I've just sold my EOS D30 and EOS 3, and will be ordering myself an EOS 20D this week. My father has a 20D, and since he got it he's put only 1 roll of film through his EOS 1v, which he's thinking of selling. The 20D is not perfect, and I'd rather have a 1DSII, but haven't got that kind of money. The ISO1600 performance of the 20D on an A4 print walks all over any ISO800 film.
However, wait a week or two. Nikon are about to release the D50 and D70s. The D70 truly beat the EOS 300D although it was a little more expensive. The D50 is aimed to be cheaper than the 350D, although it will likely lack quite a few features as the 300D did. The 350D is a big step up on the 300D. Once the D50 is a known quantity then you'll be in a better position to make the call.