I started with a Canon Powershot A480 a few years ago. It's a cheap one, with a great Super Macro setting. Last year, I upgraded to a Canon Rebel XS. I bought a telephoto lense for it (55-250mm), and I'm planning on getting a macro lense for it as well.
I use the Rebel daily, and I get wonderful pictures out of it! The only issue I've ever had with it is indoor photography- these cameras were not made for indoor use. Unless you really know how to fiddle with the settings, don't use it for indoor pictures. The lighting always gets screwed. But it works wonderfully for action shots, and landscape shots.
I still use my little Powershot for all macro pictures. The Super Macro setting is ten times better than my Rebel's macro setting.