Whether a camera is 'good' or 'bad' is a complicated question. When all is said and done, the question becomes whether the camera is 'good' or 'bad' for the use you will make of it -- not what someone else thinks you need.
Your budget precludes the dslrs, with their wider range of capabilities. The FZ7 is one of the cameras which fall within your limits. It is certainly a reasonable choice. Remember that you'll probably soon wish to add a few pieces of gear such as a tripod, a polarizing filter and a spare battery.
If you want to get started in photography, almost any camera will do. With time, as your skills and tastes develop, you may find that a different camera will serve you better. On the other hand, you may conclude that working with the FZ7 is right where you wish to be. Time will tell. The important thing is to start.
For whatever it's worth, I have a Panasonic FZ20 and am well-pleased with my purchase. Please note, though, that the types of subjects I choose to photograph are probably different from those that you will choose.
Incidentally, I sometimes go 'street-shooting' armed with an old Kiev 35mm rangefinder rig [probably far older than you are!] loaded with b&w film! A camera need not be the very latest top-of-the-line 'Gee Whiz' Special Edition rig to get the dog properly walked.
Huh? What? Oh. Sorry 'bout that. I got carried away. My advice? OK. Here it is: Do it and get out there taking pictures! Set two goals for yourself:
1. Learn to use one new feature of your camera each week. Practice using it until you really know it.
2. Try to make the photographs you take this week better than the ones that you took last week.
