cameras

[Colin]

Yes, as you get higher in the mega pixel range, the image has to be sharper and the colors more defined, since there are more bits of information written to the memory card. As you start to enlarge the image on a printer, let's say, the more pixels you have to work with, the better the image will appear once enlarged.
If all you want to do is shoot for publication via e-mail or on a website, some of the smaller (2-3 mega pixel) cameras will work fine for the casual shooter. Once you get into the 4+ mega pixel range, the images will definitely appear better, since again, there is more information contained in the image. But the downside is the file sizes become huge, especially when uploading to a website or downloading from a website.
With film, there is the advantage of better enlargements (I'm speaking of prints 16 x 20) over digital photos. Current "consumer priced" digital cameras can't match the image quality of film...yet. Unless you have the $$$ to invest in some of the 10-12 megapixel pro cameras from Nikon.