One other thought that I have not seen mentioned is the world of scrapbooking. If you plan to scrapbook then it is nice to have the digital camera option and you can print only the pictures you want. Color ink jet printers are pretty cheap these days, but give good quality prints for scrapbooking. We also have the Sony Mavica CD and chose it because it holds more shots than any other medium and we can buy a pack of 5 CD's for about $20, which is much cheaper than the other mediums.
Anyway, before buying anything, look at the differences between compact flash, the other chip that I forget the name of and CD technology to decide what is best for your lifestyle.