I thought I would quote this post from
FM Forums by LordArka. It's the best summary of the situation I have seen so far.
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It's obviously clear that cameras are for taking pictures, and that the use of cameras as fetish objects or milestones in technological achievement contribute little to the artistic endeavor. But what I think is salient in this discussion is not whether you are satisfied with your gear, but rather, as plnelson has already mentioned, the business aspect of photography. It is here that I think Nikon has made and continues to make critical mistakes, and Nikonians continue to apologize for it. Even as pleased photographers, we should recognize as both artists and investors in technology that these recent announcements by both Canon and Nikon are very important to our craft; perhaps not now, but certainly 2, 5, or even 10 years from now.
As such, they paint a very stark picture of two companies with very different approaches to addressing consumer needs.
Canon has shifted the marketplace with the Rebel, and is squarely targeting the sub-$1000 entry level market which they created. It's true that Nikon supplanted Canon with a better product (D70), but the Rebel XT gives Canon the edge again. Considering that the D70 is Nikon's cash cow, and the source of revenue for Nikon's ongoing equipment development, I can't understand how some of you don't see the importance of this announcement. If the XT starts eating into Nikon's paycheck, it is bad for Nikonians directly, and bad for Canonians indirectly, as Canon's competition grows weaker and weaker.
One can call Canon a 'photographic prostitute' or bemoan the 'planned obsolesence' strategy all they want, but it is clear with every Canon product release that they are listening to their consumers and delivering innovations to their bodies to match expectations. The Rebel addresses speed, styling, and feature lockout issues directly. All of these 'issues' were widely reported, and Canon has moved to make the appropriate changes. Nikon has completely failed to do that with the D2Hs, which was arguably not a product intended for a broad enough audience anyway. Yet once again, some Nikonians are spinning the comparatively slow and haphazard pace of innovation at Nikon as a compelling advantage rather than a crippling limitation.
I don't know how some of you can imagine that releasing new products to address complaints in previous products is somehow a bad business strategy.
Often, the people who complain that Canon undercuts the used market for their cameras through frequent product releases are the same people who claim that they would never sell their own gear since it works for them. So even though their professed satisfaction with existing kit would insulate from vagaries in the used gear market, they applaud Nikon for protecting the value of their equipment by not innovating. Talk about apolgism!
To those who hype slow innovation by a parent company as an advantage that protects used product prices, take a look at the Olympus E-1. Here we have an outstanding camera from a smaller manufacturer with dedicated lens options. They have not released any updates to that camera, and it used to retail for $1999 body only. I can now pick up the body with a lens for $1000! Why? Because even though Olympus can't innovate to keep up, others, like Canon, can, and hence bury the competition and demolish the second hand markets for themselves AND everyone else!
Nikon should've seen this coming, and I hope they have something to address this. The new Rebel now pretty much does everything that the D70 does, and they added two more megapixels to it. That was extremely smart, considering that the entry level market is pretty sensitive to resolution. If they don't, and if the D2Hs is the extent of Nikon's innovation for this show, then I hope that more Nikonians are willing to hold Nikon to account, in some way, for their inertness and conservatism. If system adherents are not willing to recognize and somehow make Nikon address the limitations in their strategy, Nikon really is doomed...