respectfully, i disagree. P&S cameras today take great photos, and to the average person, they more than likely cannot tell a difference in photo quality. a DSLR in the hands of a regular person will 9/10 times, be used in the auto setting. that means you're using the on camera flash, and high ISO in dark situations. you're going to get noise in either case, especially if you're using a DSLR from the lower end of the spectrum.
DSLR cons:
-size. they're big, and that can be a turn off. if you can't just toss it in a purse or in your pocket, you're less likely to tote it around.
-interchangeable lenses equate to more to carry, more money, and you have to worry about dust and scratches.
pros:
-they do take great photos. but results are best met when you understand photography. IE, shooting in manual and avoiding use of the on-board flash. which equates to using a tripod when it's dark out.
P&S pros:
-size. they're small and can go anywhere.
-price. they're cheaper when you're buying new.
-new ones have tons of features. red-eye elimination, face recognition, touch screen, live view, video, color accent mode, etc. you can do lots of fun things that require photoshop with a dslr.
-most recent cameras have lots of manual settings as well.
do i think that a DSLR is more capable? of course i do, however, the average person will never make use of even half of the potential benefits relating to a DSLR. so i do agree that overall, a DSLR is a better camera. but taking into consideration who will be using it, and what the intended use is, a point and shoot is more than likely the better option in this scenario. keep i mind, there is a large learning curve when getting into a DSLR, and it can be frustrating at first. people assume that when you get a dslr, you will take amazing photos right off the bat. as a DSLR owner yourself, you know that it takes some dedication to learn the ropes. when i got mine a few years ago, i had no idea what i was doing, changing the ISO, aperture, shutter speed, focus points, shooting in RAW, using a tripod, post processing, etc. it can be overwhelming as crap.
just to reiterate, simplicity is the the name of the game. My father, for example, has a digital rebel XT. he has no clue how to use it in any setting but auto. his iphone 4 takes pretty great photos, is small and easy to use. thus, the rebel sits on a shelf and collects dust.