If you have budget of $700, I would say go for an entry level DSLR, based on how good you already are. If pocket size portability is not your issue at all, then you shouldn't even consider the compact point and shoot option. Paying for too many features that you will never use is of no point, and high megapixel thing is just a hype.

I would recommend an entry level DSLR like Nikon D40, and invest the remaining money in lens, filters, and flash (if desired). If you want that camera to record video too, then you have to look for sth like Nikon D90 (not sure if it records video, you can check that out).

Simple if beutiful, and small is beautiful too, so don't overwhelm yourself with too many techno jargons. FYI: check  kenrockwell.com for some more insight.