I really enjoyed reading this. Very practical and sound advice, and it's good to hear from someone who has the experience and expertise to know.
I'm not a professional photographer (and I'm only an amateur one now and then), but I did publish weekly newspapers for several years, and we actually used the Olympus DSLRs from the moment we were able to switch from film. That was over 15 years ago, closer to 17 or so.
The last one I bought was the E-3. I think I actually liked the E-1 better, because of that point of diminishing returns you speak of. I found that we ended up spending money in trying to get good lenses more than necessarily worrying about the camera body.
Low light indoors, like in a gymnasium was hard to get action shots without a blur, and outdoor shots under the lights could be too depending on where the action was on the field. The rest of the time, things turned out great.
Thanks for providing this 'non-guide' advice. And congratulations on the curie. :)
RE: Which Camera Should I Buy?