Dan: I think the G10 is a fantastic camera for what it is, a great compact that when used with particular awareness of its limitations can -- at iso 80, 100, and perhaps also at 200 -- produce prints up to 18" or even in some circumstances 24" in the long dimension that can equal those from a top quality 12 megapixel DSLR, i.e. produce fine art quality prints. This assumes that you shoot in RAW, process your images carefully, and make use of the extended depth of field. If you see my posts in the other thread in this forum, you'll see that I think the G10 is better than entry level DSLRs in some respects -- primarily its size and arguably its superior resolution.
That said, if your objective is to understand more about photography and not to be confused everytime you get the camera out, I would definitely go with a DSLR. I am a very experienced photographer and digital photographer, having use view cameras extensively, a Canon 5D, and, years ago, a Canon G2. The G10 is not easy to use well. It is much more confusing than a DSLR where what you're doing is fairly transparent, and it's easy to check settings. A G10 is also not an ideal learning tool because it is extremely difficult to vary depth of field and even if you want to do that there are only a few limited circumstances in which you can have a thinner depth of field, and even then it's not very thin.
If your goal is to learn more about photography, I would look into a DSLR that has a good prime lens selection. Probably the best for smaller sized cameras and lenses right now is Pentax because of their 5 or size "limited" lenses that are especially compact.
I am amazed by the G10 for what it is, and in its areas of strength (compactness, high resolution, and a very good lens), it is especially successful.
Thanks to everyone that replied.
Your replys have been very helpful, and it has given me a lot to think about that I wouldn't have on my own. Much appreciated.
I can safely say that I've ruled out the FZ28, and I'm heavily leaning towards the G10 (thanks to this topic and a few others on this forum at this time...).
I know some of you recommended DSLR's, however I just want to stress I'm not a proffesional, and I am just looking for a camera that'll help me to understand more about photography in the areas and styles that I mentionaed earlier without confusing the hell out me everytime I get the camera out (then when I finally get my head around it, the moments' probably gone). For me the camera has to be P&S with great flexibility, ie compact, wide, tele, macro, low-light, video, and RAW, as it'll be my only camera. And not to mention, my budget won't allow for a DSLR and all the extras to make it do what I want.
For these reasons I think the G10 will be a solid choice (must admit I am disappointed about not having 720p HD video rec). I'll be ready to get one within the next month or so and can't wait! Hopefully pricess drop a little by then too
Dan