Thinking about a new camera.

I am thinking about getting a new camera with interchangeable lenses. I am debating between a DSLR and mirrorless compact. I don't want anything with a sensor smaller than the Nikon 1" and definitely want the capability of using lenses that allow me to get an acceptable bokeh effect. Both of those requirements rule out all of the all-in-one superzoom type cameras. My current point and shoot Canon S95 has an f 2.0 lens, but due to the 1/1.7 sensor, the background blurring is only effective when the object of focus is very close. I also have an older Kodak Z612 which has been a good camera, but I'm ready to move up.

In my budget I have pretty much narrowed it down to two. The Nikon J1 or the Canon EOS T3. Obviously the J1 is much smaller and easier to carry around and has better video and the cool slow-mo video mode, while the T3 has a much larger sensor and better manual control and feel. I am open to suggestions, but I want to keep the total price with three lenses around $700.

The only superzoom that I would consider is the Lumix DMC-FZ200, but the sensor is too small.

Canon EOS T3 and accessories:

Nikon J1 and accessories: