Hiya,
IMHO images 'acquired' from any source must be classified by the 'medium of highest resolution'. With any imaging (analogue or digital) this must be paper (digital doesn't quite cut it yet). And paper resolution is measured in DPI - nothing else.
This is why if 'imaging', the camera must have the necessary amount of resolution to satisfy the printing requirement.
'Viewing requirements' are secondary i.e. if the image is to be viewed 'web-wise' it is better to save a lower DPI file for use in that medium, but not to deliberately take an image at the lowest resolution first for that medium (otherwise we would all still be using 1 megapixel cameras).
This brings us back to resolution - on a 6" (15cm) by 4" (10cm) photo (standard photo size in Australia, not sure what it is elsewhere) the dpi of a 5 Megapixel camera (2592 x 1944 pixels) works out at 432 x 486 dpi. This is what I would consider to be 'minimum' acceptable quality as inkjets can produce reasonable to good images at their printing resolutions.
A1 printers such as the HP DesignJet have a DPI rating of 2400 by 1200. Images on these type of machines MUST have as much information as possible.
Example:
Images acquired from LANDSAT (used for geographical surveys) have a typical resolution of 3600 dpi with each single image requiring 1.3Gbytes of storage (Black & White).
The image at 3600 dpi has a pixel size of 57 meters.
So I stand by my point that eventually as higher resolutions are achieved, dpi from digital cameras will be more important that actual pixel resolution.
As for dpi only being important for printing, I'm sure that any desktop publisher would know the DPI of their monitor and how the image resolution relates to internet publishing as well as the standard 'print media' (a 1600x1200 image on a 19" monitor as a horizontal DPI of about 84). Imagine trying to view a LANDSAT image on a monitor (LCD, CRT, whatever). The best way to view such digital images is to perform the processing, then print.
So by extension I'll make the prediction that as monitor resolution increases - so does the importance of dpi. Web browsers may just start using that dpi setting altering the image displayed depending on the capabilities of the viewing device. In fact some browsers already do, such as those on PocketPC's and Mobile Phone Web access.
Of course having enough memory and storage space to 'play' with the images to make sense of them is another point entirely. Where's that 1Tbyte of RAM?