Hey Mike - I felt the same for a long time, but now there is a lot more competition in the market and that has made getting a DSLR for a more affordable price. I understand going out and dropping $600 or $700 for a camera is still decent coin, but it is a good purchase IMO. I'm really outdoorsy and have a 2 month old though so it gets used every day.
The only thing that you have to prepare yourself for is that if you buy a nice DSLR one day it is highly probable that there will be a bigger better model released just a short distance down the road that will be just as comparable in price, but this is the case for all 'technology' I guess.