I bought my first digital camera last week. It's a Pentax S5i. I got it at Costco for $300, plus $90 for the 1GB SD card.
I wanted a camera that was small enough to carry around easily, but that takes great-looking pictures. The Pentax fits the bill. It has a ton of features that I haven't figured out how to use properly yet. I'll need to get a book on photography to learn when to adjust the white balance or exposure. Out of the box, it takes very pretty pictures though.
The macro mode allows me to take pictures very close-up.
I'm also enjoying the black-and-white filter and sunset mode.
The camera plays nicely with Linux. It came with a USB cable, and upon plugging it in, it is detected as a scsi device using the usb-storage module, just like the iPod Shuffle.
The state is that great fiction by which everyone tries to live at the expense of everyone else. - Frederic Bastiat