I cannot see how the K200D is better in features and specifications than the entry level DSLRs of C and N such as D60, 450D or even the new EOS 1000D, although it is true that the K200D is priced higher which is the only true statement which I can see. In contrast, the reverse is true.
Also, to make a P&S DSLR actually is not quite easy. At least, the camera or system itself needed to be performing accurately enough to let the jpegs to be usable directly out of the camera.
Originally Posted by XMACHINA 
Nothing groundbreaking, but for those among us who have been speculating about the possibility that Pentax will be offering an "entry-level," low(er)-priced, compact, light-weight, digital equivalent of a K1000 to compliment those wonderful pancake lenses, you might want to note this part of the interview:
PRM: The Pentax K1000 was “the” student camera in the 1970s and ’80s. Are there any plans to try to recapture the younger market?
NB: I don’t think it’s relevant to compare the K1000 to what’s happening in the digital marketplace today—times are different. And, despite the fact that Pentax had great success with the K1000 in the ’70s and ’80s, as the photography student’s first SLR, when it was time to upgrade, many of them moved up to another brand. So we never gained a long-term relationship with these customers. With that in mind, we’re taking a different approach this year.
If you look at the K200D, which is priced at $799, we are clearly not positioning this as a bare-bones entry-level camera. While other companies are releasing lower cost DSLRs, they are very limited in the advanced features they offer. They’re really point-and-shoot cameras in an SLR body. What we tried to do in the K200D is to combine easy-to-use shooting modes and advanced camera features, all in one body, rather than going just for a price point. Our feeling is that someone who is new to using a DSLR can explore and expand their photography skills with our K200D. And as they become more accomplished as a photographer, they’ll appreciate all the advanced features they can take advantage of in the K200D, rather than having to buy a new camera body.
It would appear that the K200D is, and will remain for some time, your entry level Pentax DSLR. You may resume, without reservation, your consideration of the Olympus E-420 with the 25mm pancake.
I know I'm going to.
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