I've been following the price of the Canon 40D on Amazon closely over the past week, trying to avoid the temptation of buying new camera equipment. I told myself that I would at least wait until January 1st so that I could claim it as a business expense in 2008, seeing as my lack of restraint gave me more than enough expenses in 2007. The main features that are enticing me are better dynamic range + highlight protection (important for shooting in the noon sun), live view (important for when you just have to hold the camera over your head to get a shot), and dust reduction (I hate swabbing the sensor). 10MP is a plus, but not a huge improvement over the 8MP I'm used to.
Anyway, in the past week, it seems that the 40D has been plummeting in price. When it was $1299.99, I was considering getting the $1424 40D + 28-135 IS USM kit, seeing as you get a $400 lens for only $130 or so. Then the price dropped to $1219 and I was thrown into indecision. Now it's dropped to $1149 -- who cares about the package deal at that price? The closest reputable dealer I could find selling at that price was B&H, which has it for the same price, used. BuyDig has it for $1199. I'm hoping that these price reductions last after Christmas.
Side note: Canon hit the 30 millionth EOS SLR this week -- I'm doing my best to contribute.