For $100 more you can get into an entry level DSLR.
Yeah, but that's also a huge investment into lenses, bodies, etc. for a number of years.
For a hobbyist one thing I don't like about the Canon line of point and shoots is that they don't do "RAW" format images.
If you can take a good picture, it doesn't matter so much the file format you took it in. There are plenty of pictures that I can say, "yeah, RAW would have been nice to have had then" but I also realize I may have missed those shots because I'd have been overwhelmed by the camera.
- manual control of focus and exposure NOT buried inside a menu. I want real buttons and knobs.
- Raw format images
- good optics, sharp with no color fringing.
You don't need much else. Well, the abillty to control and off camera flash would be very nice.
I have a PowerShot S2 IS, and it did those things very well. (Well, 'cept for the RAW bit) Manual focus with an EVF is tricky, but possible, and I found the advantages far outweighed the disadvantages. Exposure control is a button right underneath your thumb. The lens was great, and it wasn't until I pushed it
hard that I got purple fringing (pretty bad, unfortunately, because it was a great shot, but then again the camera was two years old at the time and didn't have a UV filter over it which didn't the situation... never any other problems, though)
The S5 has a hotshoe, which is a great feature for an already great camera.
It would be good to see some of your pictures to know what to recommend. But tentatively, I'd say, go for the S5. Learn with it. In a couple years, decide on a dSLR. But the S5 offers plenty of power.