It really depends on what your wife is primarily doing with it, but I can definitely recommend the 550d. It's one of the best cameras I've ever owned. The HD video mode is spectacular (I shot a film clip last weekend for a band and the quality is amazing).

Still Photos-wise there are better options out there, but it's still a very VERY good camera. The only people who will have a problem with it's limitations are professional photographers, so I can highly recommend it for beginners! As for the kit lenses... they're not very good, but it's better than nothing (just ). It's definitely worth investing in better glass as you go on. That's where your money goes... cameras are often replaced, but lenses should last you a lifetime. Your shots will look better and you'll have more fun. The nifty fifty is great (it's a fixed focal prime 50mm) and only costs $100-130.

I could talk all day...