Don't think of the DSLR as only 200 more. There's TONS more cost associated with it especially better glass and external flash units. Don't forget a good case, extra batteries/battery grip/filters/tripod etc. It can add up pretty quick.

I guess the big question is what are you going to be shooting 90% of the time and what do you want of the pics. Most new point and shoots offer AWESOME pictures out of the box with good color and contrast.

The DSLR comes in handy when you wanna have more control and be a little more creative. if you're gonna be moving around, point and shoot can't be beat. If you're going to be stationary, DSLR "could" be a better option depending on glass, and user ability.