@jak, digital zoom is a bad idea anyway :S I tried it once on a point and shoot and it came out horrrriiible, tried it on some 6MP Kodak about 5 or so years ago.. At first I was like, oh cool I can zoom in more!.. Yea they came out insanely pixelated.
Also, you bring up proper lenses, yes.. you do, unless you want bad pictures.
@harjun, if you're seriously going to buy that 400D, keep in mind the standard zoom is the equivalent of I believe something like .5x - 1.3x zoom (i believe that's what it is on the Canon 400D, I don't know what sensor size it has)
Meaning.. wide angle to lifesize (well, they don't actually call it lifesize in photography, that'd be 1:1 which is macro talk, and I don't want to get into it cause it confuses me!)
Even my Nikon 55-200mm VR lens is the equivalent of 1x - 11.1x zoom (28°50' - 8°) equivalent of 82.5 - 300mm on a 35mm camera, but all Nikons except the new D3 (which is full fram, a full 35mm) are 1.5x sensors, meaning.. they're equal to a 17.5mm frame of film.
@stewart; really! wow, finally canon has a cheap lens! lol to bad they won't give us the zoom lens yet though, my sister has been looking for a zoom lens for her XT for two years now, and the cheapest I could find was $200, but it didn't have IS, which is a MUUUUST for anything beyond 100mm
@General Lee, was that taken with your phone's camera lol?