Also, Canon has their OWN CMOS sensor. They have been developing it for years and years. Also, i wouldn't base your decision on a camera based on what size the LCD is. I mean you are not going to post process your images on the camera screen. A 1DS (that is from 2002) that has a 1.8 inch screen will render better results than an XS or XSi.
Also, the camera is a tool. As is glass. They are all going to take pictures. It is up to the person behind the lens to utilize the tools, so to speak. And you cannot compare the colours from one manufacturer with their own lens versus another manufacturer with their own lens. It is isn't exactly Apples to Apples, so to speak.
You need to figure out how serious you are going to be about photography. To be honest, the XS is not that great. Yes, it is cheap, but you will out grow it super quick. You would be better off buying something used, maybe a 40D or 50D and getting better glass. Go to best buy and feel the difference between the XS and the 50D (or 7D, basic same body).
My history of cameras has been kinda weird. I went from a Canon P&S film in the early 1990s. Then i got my EOS-3 in the early 2000s (2002). Then bought a Fuji S602Z (still had the EOS-3). Years later, i got an EOS 650 and a 30D, sold the S602Z. I then sold my film bodies and the 30D. Went w/o a camera for a while (got into school), then bought a Samsung P&S, sold for a Canon G9, sold that last summer for an XSi, then just got rid of that, along with my lenses for a 40D+17-40L, which i will probably end up selling the 40D for a 5D and upgrade to a 24-70L .
My point is that i went through a lot of worthless and wasteful purchases, lol. I sold the XSi because i needed better AF, solid build, the dedicated wheel and top LCD, at the "sacrafice" of 2 megapixels. I sold the G9 because i missed a DSLR and got frustrated by the limitations of the P&S, even if it shot RAW and had manual controls.
So in closing on my aimless rant, chose a body that you can grow into and will be comfortable with. Buying used is the best way to go, because when you reach that point of upgrading, you won't take a huge loss on the body (unless you buy a 7D or something brand newish, used). Lenses hold their value really well, and used is the best way.