I've got a Nikon Coolpix 3100... am VERY happy with it. I bought it thinking it'd be fine for PC imaging, but I've got a Dye Sub printer at work and have printed a number of images (all the way up to 8x11)... and they look excellent! Well... at 8x11 there is some pixellation... but heck it's only 3.2 megapix and cost under $300 bucks (at Walmart, you can probably get it cheaper elsewhere). It's also got a macro mode and lots of ease of use features.
a review:
http://www.steves-digicams.com/2003_...nikon3100.html
Does it replace my N90? Hell no... but it's super easy to use, small, and holds over 250 images (with a 256 meg compact flash) at full resolution.
As far as memory form factor... SD or CF... either will work fine (and be supported for a long time to come). I think price wise SD may be a tad more, but it's not enough to worry about. I agree to avoid any other proprietary memory designs (you'll get hosed when you buy more).