If gear didn't matter, everyone would be taking pictures with a cellphone camera. Nearly everyone has a cellphone with a camera in it (except me). Why not just use that as it is difficult to buy a cellphone without a camera built in?
Some people call photography art. Some people call it taking pictures. I don't call it art. You are taking a photo. It doesn't matter how you take the photo if it is taken the way you want it to. The art thing is a crock in my eyes. Anyone can learn it as all it takes is a little reading.
Before someone starts ranting on that comment and spouting about Ansel or whatever his name is, I haven't seen anything better from the various "famous artist photographers" than I have seen from some people on here. I think it is ridiculous the amount of money that some people can make for taking pictures. It is nothing more than taking a picture, same as everyone does.
I certainly can't take the same photograph on my Fuji S700 as someone else can with their dSLR. I also can not take the same photo on my old Fuji 2650 as I can on my S700.
If all you want to do is take pictures of your family birthday parties, your kids, vacation, you will still benefit to using a D40 or an XTi over a lesser advanced model. The dSLR will take a better snapshot due to the quality of the sensor over a lesser camera for this person as well as take a better shot for a "photographer" due to the advanced features. If you are looking at the quality of the image, then the gear definitely matters.
I think all the "it's the photographer behind the camera, not the camera" is untrue. It is all relative on what you want as a result. If you want a picture of your kids at the beach, a dSLR in automatic mode is going to be much better than an $80 ultra compact in automatic mode. As well as, someone who is looking for a particular result such as DOF or sports shooting, will achieve better results with not only a dSLR, but with a better lens as well.