Robin, that camera you are looking at only has digital zoom. As most posters have said, optical zoom is the best. I use my zoom about for about half of my shots.
DH bought dd and I our fvery first digital cameras for xmas. The Cannon S330 2 mexapixel and 3x optical zoom. Small, sturdy and an excellent lense.
Went to Disney right after we got them and got good results with the camera. Didn't even use my regular APS camera down there.
I don't have a printer and I don't think I want one right now. I take my card into Sams and print for 20 each.
You are NOT obsessing! There is SO much info out there about digital cameras, and it is an expensive purchase.
herc.