Taking the photographer OUT of the equation, the D40 is dated.
No debate there. But does it suddenly just stop taking good photos because it's dated?
It's worth about $150 with a lens.
According to you it is worth $150. Care to share a link where I can get one for only $150 that is not flee-bay. No joking, I would genuinely like to know where I could find any DSLR + lens for only $150.
The D40 is no longer in production, so a low shutter count mint D40 is worth way more than $150 to a photographer that would need a 1/500 flash sync. Even faster if you use non-TTL flashes, upwards to 1/4000. That is huge when trying to shoot outdoors @ large apertures and fill flash.
brand new 2012 models sell for $599, so paying $300+ for a camera that debuted 6 years ago is absurd.
So the OP should just pony up $600 because newer = better? For someone learning to use a DSLR and finds interest in the hobby, you know they will eventually upgrade anyway. And if they find no interest, its just a $330 learning experience. And for $300 the OP would get a DSLR + 2 lenses, giving them 18-200mm instantly. They aren't the best lenses in the world, but Nikon's kit lenses are pretty tack sharp.
I'm so glad I've gotten over my NAS. Now I actually use my equipment instead of worrying about what a better lens/body might do for me. Feels good to just shoot. I even quit pixel peeping, :O.
"Beginners worry about equipment, professionals worry about money, masters worry about light."
Ninja edit: Not trying to start a debate, just bored at work,
. I'm always trying to play devil's advocate.