Hi,
I use the predecessor model (FZ18) camera for my personal snapshooting. At higher levels I use Canon 35mm "L" and Contax 645.
While all small sensor cameras have limitations, I wholeheartedly recommend the FZ28. The incredibly long and wide zoom offers lots of compositional possibilities for a new photographer. There is no DSLR kit that can even come close for this price. Also, it is incredibly light, can be carried in a purse, and is easy to have with you all the time than a DSLR. And, for someone who wants to seriously learn photography, it is MUCH better and more versatile than "pocket" p/s cameras.
The camera offers full manual exposure controls and full control over white balances (even WB adjustment and custom WB) if you wish. Manual focus is available also and not hard to get used to. There is a filter thread for polarizers.
The camera also offers a form of depth of field preview (when you press the shutter half way the lens stops down) but with tiny sensor cameras this is of limited usefulness--but there just the same.
The EVF is essential for any serious photography that takes place out of doors, and is pretty good.
The panny quick menu allows instant access to the most important functions.
I would say, though, that if she wants to print photos at sizes larger than 8x10 (or 5x7 at any iso 400 and above) then a DSLR will offer much higher quality. If she wants to shoot for small album prints, for the web, for computer, for Ipods etc then this camera's quality is more than enough for a learner's first camera.
Good luck!
Guy