Thanks for all of the info. If there's any more, please feel free to share/debate it. My coworker who is researching this recommends a Pentax, but it will help to look into the Cannon and Nikon recommendations here.

Why SLR? Probably because the requestor thinks "bigger and more expensive will reduce the shake and give better pictures." I'm thinking SLR will have better and faster automatic adjustment of the many settings required for good indoor photography. And, hopefully allow the addition of lenses which might make indoor shots even better. Sure a tripod could work, but I think we're trying to avoid that.