This year you'll finally be able to get the digital camera you've always dreamed of, but couldn't afford.

"Popular digital SLR cameras from Canon and Nikon generally set you back around $1,000. But discounters will likely drive that down to $299 by year's end", says Chris Chute, analyst at researcher IDC. That's just a bit higher than most people pay now for compact point-and-shoot cameras. "This will dramatically reshape the digital camera market", Chute says. "It will give consumers a reason to jump into features they've always wanted, but didn't know they could get".

Professional-looking digital SLRs (single-lens reflex) can stop action on a dime, without annoying shutter lag. They produce better-looking photos in low light and are much easier to use than beginners might think.

Chute says the point-and-shoot market peaked in 2006 at 29.8 million cameras. He expects stagnation this year. Meanwhile, 1.7 million digital SLRs sold in 2006, which he expects to jump to over 2 million for 2007.

At the Photo Marketing Association trade show that concluded over the weekend, Olympus and Nikon introduced new SLRs for $799 that are expected to greatly fall in price in the next months, as they compete with Canon's market-leading $799 EOS Digital Rebel XTi, which has a 10-megapixel sensor.

Nikon's lineup includes the $599, 6-megapixel D40. Its new $799 D40x matches Canon's 10 megapixels. Olympus' 10-megapixel Evolt E-410, also $799, offers built-in image stabilization, which helps make shots steady for those with shaky hands.

The E-410 is small and an ultralight 10 ounces (~280 grams). "Portability is the key for the female demographic", says Olympus product manager Sally Smith Clemens.

On the other end of the spectrum, Canon unveiled its latest super-high-end SLR. It's a $4,000 model targeting professional users, mostly sports and news photographers.

The EOS-1D Mark III is "the fastest camera we've ever had", says Chuck Westfall, a Canon customer service executive. The Mark III can shoot 110 pictures in 11 seconds.

The new SLRs are expected in stores later this month.

So many cameras. In the heyday of SLRs, iconic cameras such as the Nikon F and Nikkormat were around for decades. Now Nikon, like its rivals, introduces about 20 cameras a year, only to replace the following year with new ones.

"The average Nikon camera lives on for just six to eight months", says Nikon senior product manager Steve Heiner.

Why the constant rearranging? "The stores demand it; the consumer demands it. They want to see 'what's new'", Heiner says.

Olympus' Smith Clemens says that unlike the film era, when cameras changed at a slower rate, "In electronics, the technology is constantly evolving, and we want to bring the new innovations to our customers as soon as we can".

Big zoom, small size. Most compact cameras come with a 3X zoom, which brings you a little closer to the action from your seat. A new breed of "super zoom" tried to bring people even closer, with a 10X zoom. The disadvantage was that these cameras were big and uncomfortable and couldn't fit into a pocket.

Not anymore. Panasonic's Lumix TZ3 is a typical compact size, but also has a 10X zoom. The $349, 7-megapixel camera is expected in stores later this month.