I'm in the same position of looking seriously at the Nikon 5400. I've done some pretty substantial research which leads me to conclude it's a good buy for me.
The PROs are:
small size, easy to handle and use
just the right combination of zoom range and resolution for 'typical' usage
excellent AE and colours
plenty of nice features such as BSS
ISO 50 setting
The CONs are:
I feel at some stage I might want more than the zoom can offer - not really a problem because of the availability of the teleconvertor
Slightly less sharp images compared to some competitors - one review I read said this could be avoided by setting the camera's sharpening mode to something higher than 'normal'. I've looked at a lot of images from the 5400 and I'm happy with the sharpness most of the time. Nikon's image processing seems to be just a little softer than some in terms of 'normal' sharpness.
Firmware update due Spring 2004 - what this will contain is unknown expect that it's expected to introduce support for RAW format.
Optical viewfinder doesn't cover whole image - just have to use the LCD for framing or learn to compensate - also, the optical finder uses less power so maybe that's the compensation.
Low-light focus: almost all the reviews comment on poor focusing performance in low light. I'm encouraged to have read that this can, to some extent, be overcome by selecting one of the alternative AF modes (and perhaps there are other practical 'tricks' too in order to get good results). I guess I will have to rely on manual focus some of the time.
WISH LIST
I'd like a faster lens across the zoom range because I'm keen on available light portraits. The f4.1 is just a bit limiting. However, if I had to choose between a faster lens and a lighter lens then I'd compromise in favour of light weight and small size, just as Nikon have done.
All in all, I've concluded this is the camera for me and plan to purchase one in a week or two. I was particularly encouraged by
http://www.digitalsecrets.net. It's worth reading I think and there are some great shots at
http://www.digitalsecrets.net/secrets/Travel2003.html
Hope that's helpful.