To post 1024x768 size,

Olympus 3040 is enough. You need to know what the camera can do and what can't. For palm trees, should be OK. If you are taking picture of a girl that you want sharp reflection on eye and details of skin and hair, yes, 3040 is not a good choice. You need a better camera with better len.

Here are some examples that Sha Gua Ji may not be able to do:

1) Take a detail shot of a bird in distance. You might want to buy a better camera that can fit 200-300mm lens.

2) Close detail of a tiny bug.

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Within normal light condition range, including sunrise and sunset, Sha Gua Ji is not as bad as you think.
Of course, Sha Gua Ji is more difficult (but noy impossible) to take good pictures. Thus it is more fun. It relys on your better understanding of the camera and lens. You feel more rewarding if you can take pictures as good as more expensive DSLRs.

I am a DC fan. You can search my ID to see the pictures I took with DCs. And compare them with other DSLRer's pictures. You will see what kind of posts I have been avoided.