If you've already got a lesser Rebel then don't bother upgrading. If this is your first, and you can afford it, it's certainly better than its predecessors. The new kit lens is better than the old one as well.
$899 is a bit steep though. If you're a AAA member you can get 8% of at Circuit City. You can get a 10% coupon from USPS for Best Buy and if you're a Reward Zone member they'll send you a 12% coupon every month or so.

