I chose my SX1 bridge camera (R6,300.00) over the budget SLR because R6,500.00 was my *entire* budget ; no more for any lens and in hindsight - I wouldn't have had for a year after that.
I got a photo's in that year that a 1000D and kit lens wouldn't have allowed
Yes - there are negatives and limits to the camera, especially in manual - but I still think it was the better purchase.
I fully understand what you are saying about the budget, that is a major constraint for us all I think
However my point is people throw around this number like 14 megapixel as if that is the magic number that should convince you to buy said camera, when in reality that is just a very small part of the bigger picture. Sorry to do this but look at the following links
http://a.img-dpreview.com/reviews/PentaxK100D/Samples/Compared/Studio/k100d_iso0200-acr.JPG
http://a.img-dpreview.com/reviews/CanonSX1IS/Samples/Comparedto/Studio/SX1IS_ISO80.JPG
The first is a Pentax K100D the second is your Canon SX 1S.
How these tests work is they have the same controlled lighting and setup and then
take a photo at the cameras largest photo size, with the default lens. So in this case the images from the Canon is slightly larger than that of the Pentax. But expand them to full size and look at the colour differences. Secondly when full size look at the red line that forms on the Canon's grey scale chart under the number 1 or the red line at the top of the Y yellow circle. Look at the haloing on the Kodak Greyscale words, and the noise in the black areas of the colour chart with the Canon. The canon is a 10 megapixel camera, the Pentax is a 6 megapixel. You don't see that on the 6mp camera. And in my mind even at the slightly smaller size that picture from the Pentax is big enough for the majority of your average people who want to take photos.
This is the point I am trying to make. 14 megapixel doesn't mean it is better than an older 10 or even 8 megepixel camera. There are too many other variants coming in to the equation to simply rely on megapixels.
This is just one of my pet peeves sorry, but industry has managed to convince a large majority of people that megapixels is the feature that determines picture quality. And for that reason they cram a large number of pixels on a small sensor, call it a new model push the price up and punt it as being better than an older DSLR on the simple basis that it has more megapixels. That however is not the case.
To get back on topic, to the OP if I was buying a new camera today I would look at getting an older DSLR with less megapixels and a decent 18-55mm lens. You will more than likely be getting better results than a 14mp point and shoot.