Romancing the digital pixelated stone
Ah, obsolescence, as digitalfilipino points out, in the digital photography world can be viewed in different ways. First and foremost, like all technological gadgets out there, an item becomes obsolete ONLY when you do not have any use for it anymore - when its purpose is no longer relevant to your needs. However, it is often coupled with support from the industry, of course. If the item is no longer supported and you do not have all the software necessary to make it work, then that becomes obsolete. This is, often, not true for digital photography, though.
Second, in digital photography, just like in film, the camera is just a tool. As long as it takes photos that you can use, it serves its purpose.
There are two types of cameras in digital photography - the prosumer/consumer digital cameras and the professional digital single-lens-reflex cameras or DSLR as they call it. Prosumer/consumer digital cameras are the ones produced for the mass market. These are the ones that get replaced by a new model almost every 4 months! DSLRs, however, have enough staying power to last 2-3 years! Heck, a year ago, you can see images on National Geographic and Sports Illustrated (even from the official press photographers of the White House) taken using a 2 year old Kodak DSLR!
So, if you want to have more mileage and prevent your digital camera from getting obsolete so fast, get yourself a Digital SLR - a tad expensive but well worth it.
If you want more info on digital photography, just send me a note. I'd be more than willing to help out.