In reply to Climbing Pieman:
> Use lots of storage (don't know anything about RAW pics, etc)?
RAW uses heaps of space, 2TB drives are coming down in price every day though.
> Should storage be separate from PC or not?
For the same reason that you should have a non-local backup of any important files
> How do you back up the photos?
Copy and paste, nice and easy (though possibly quite slow) It might be worth getting an external drive with SATA or at least USB 3.0 to speed up data transfer. Adobe Lightroom will export a backup which stores all the MODIFICATIONS to the images but not the images themselves, so you backup the files and then backup the Lightroom files if you want (or just export an edited image)
> Are memory cards better quality with price and do you really need a better card?
Some cards work better in the high and low temperature ranges. Worth using if it gets really cold (I seem to remember in the range of -10C). Also there are "HD" cards which actually write data faster meaning you can take more frames per second. Important if you are using your camera for video as well and stills since most cameras can shoot 1080p and 30fps these days.
> Do I need to consider a special printer or is any modern printer capable of good enough results for a beginning hobbyist?
A proper photo printer will make much nicer and longer-lasting photos but are still very expensive and suck up money on ink.
>Other things to consider about digital photography that to the lay person are not obvious when starting out?
The advice to check your colour calibration of your monitor is good. My dad has a weird little device which will adjust the screen colours so you can see what the printed picture will look like. It makes a surprising amount of difference.
Digital point-and-shoots often struggle in low light. I basically don't bother with mine at night if I don't have a tripod.
My point-and-shoot is a Nikon Coolpix AW-something-or-other and I've decided waterproof cameras are really cool! Great for Scottish winter when everything is soaked, and I actually took it swimming once.
Take heaps of pictures! They're basically free.