I have a Canon REbel xTi and I love it. Makes me wish that I had bitten the bullet and gotten it much sooner. I only have two lens, the kit lens and a portrait lens that was really inexpensive and has become my best friend.
There is a learning curve, but once you put your mind to it, you'll catch on fast. I had no photography knowledge going in and now I only shoot in manual mode. I'm still learning new things everyday, but I'm a thousand times happier with the results now then I ever was with my PnS.
Here's my take on the price... Having three kids, I would spend a fortune on pictures each year, not to mention the hassel of getting them ready and going out, keeping everyone happy, etc. And the sad part is, those pics still aren't as good as what the Rebel can take. So in my mind, the camera and my lens pay off in the long run because I will never have pro portraits taken again.