I got my XS because it fit my budget, it was and still is over $100us cheaper here (HK), it feels good in my hands and low end or not it still knocks spots off the 4mp Olympus P&S I was using.
I'm sure some of the high spec bits on the XSi will help some people take "better" pictures, but if you're going to spec chase you'd better have deep pockets.
All those with the XSi dissin the XS... Why don't you get a "real" camera like the 50D and stop playing with us poor low spec users! I'm sure those extra bits would make your snaps just jolly super spiffing! I'm quite sure it's not the size of your number, but what you do with it that counts. You might even find more XS/1000D owners start posting and as with all intertubez forums everybody brings something to the table, whatever that maybe.
Also all joking aside perhaps the OP should just get a Mk1 on his credit card, write that off against his mortgage and have his gooberment pay for it.
Now that really would be some economic XS.
Fox