I was just trying to decide whether to include the Canon EOS Rebel XTi or XSi in a post on DSLRs to get for your dad (or grad) when today's Canon EOS Rebel XS announcement knocked both off the list. That's not to say that you wouldn't still choose one of them over the XS, but when the XS comes available in the U.S. in early July, it will likely bump pricing on the older models down--so I'd hold off and give an I.O.U. instead.Like the XTi, the XS is a 10-megapixel DSLR with a 2.5-inch LCD. Unlike the XTi, it drops autofocus down from nine-point (as in the XSi and XTi) to seven-point to keep pricing down. Instead, the XS has added a Live View mode and the newer Digic III Image Processor. Like the higher-end XSi, the XS will ship with an EF-S 18-55mm f/3.5-5.6 IS lens with optical image stabilization (and will also available in a body-only version). Expected to ship at the end of June outside of the U.S., pricing has not yet been set.
See Lori Grunin's post at CNET's Crave blog for a nice comparison chart of the three models and competitor Nikon D60.