I agree that it depends on what he wants to do with it. He said not professional but good. That to me instantly removes 'coolpix' type cameras from the market. Heck that 26mm lens issue you mentioned is just part of the marketing gimmicks these companies use to sell cellphone-camera CCD sensor units that they've slapped into the body of a REAL camera and gave it a cute lens so it looks better and they can charge people a lot more for them.
I have a coolpix 10mpx camera thats small and very handy to carry on my person. Very light, fits in my pocket. Takes HD video and all that jazz. Its a point and shoot camera with lots of menu options. I would never however, dare use it to take pictures I might want to print and frame.
Also own a mid-range 'good quality' picture taker Panasonic FZ-7 . 6mpixels camera that has rather good optics considering how cheap it was. With that camera I do take pics I frame..even though its less mpixels than the coolpix. The difference between the two in image quality is just massive. There is no substitute for having a good lens/optics. I bought that fz-7 about 5 years ago so today it is rather crappy but for its day, it was glorious.
Then I jointly own a Nikon D60, D80 and D300 with my parents. DSLR's with tons of options, these cameras are between the hobbyist and professional level. Yes, the optics for them cost money but thats only IF you get the fever to buy the macro, zoom lenses, etc. With those two cameras I can take insanely good quality pics and its a joy to frame them.
When I travel, on the go I take the pocket camera..its good for snapshots of the city and people...for when im not there TO take pics. When I go to places for a first time around 'scouting' them for their potential to come back and take pics, I take my DZ-7. If the place is worthy of spending a whole day in the area to take pics I return with the nikons because those are the pics ill be keeping and printing (plus the nikons and their lenses are HEAVY to carry around

).
So, if he wants good but not pro. The Nikon D3000 (the one I originally linked) has the good lens, great features and price. Performance with it will be just what he's looking for. And if he later on wants to get more into photography he can buy lens for it that should also work on the more capable cameras like the d80/d300. nikon is real good about keeping compatibility of lenses with their cameras (OP: if you do buy this camera be SURE to ask about the lens compatibility. I do not own a D3000 so im not 100% sure).
Here's a few good links for the OP :
Sensor Size does matter! :
http://photo.net/equipment/digital/sensorsize/The author tries to put things as simple as possible but truth is, it took me a while to catch what he was saying. For this discussion, simply look at the chart of the sensor sizes and graphic.
Canon D30 "Sensor size": (not given) Physical size (mm): 22.7X15.1
Nikon Coolpix 995 "Sensor size": 1/1.8" Physical size (mm): 7.2 x 5.3
Minolta Xi "Sensor size": 1/2.7" Physical size (mm): 5.3 x 4.0

Magnification needed for 8x10 crop (so that the picture taken will match that taken by a true 35mm camera):
CanonD30: 13.46x
Coolpix 995:38.3x
Minolta: 50.8x
Of these 3, the Minolta is the equivalent of the coolpix 100 ... 1/2.7" sensor means you need to mag it up to 50X just to get something similar to a 35mm film.
The coolpix 995 is marginally better than the minolta but still is crap compared to the D30 from nikon.
The d30 needs very little mag to match the 35mm.. and the D3000 has the same sensor size as the D30.
Optics Matter!:
http://photo.net/equipment/digital/basics/The pictures will say it all

Saggs:
Ive been drooling over this one: Sigma SD15 . Im thinking of selling my FZ7 and D60 to buy it. Its so nifty it has the option of going 100% manual... its the closest to a manual 35mm there is as a dslr and the new tech this camera has takes impressive pics.
