Dream World

In my dream world... which trust me there are a ton - I am a great photographer, a writer and in my spare time I am a message therapist.  A wide variety I know however these are three things that have always intrigued me, maybe some day I will be able to explore each of these options fully however in the mean time, here I am - writing a family blog, taking pictures of my little men and occasionally spoiling my husband and boys with some reflexology foot rubs.
Is it just me or what... the world of photography is an overwhelming one?  I have spent hours pouring over site after site trying to figure out which camera would be the best, which lens and all the gadgets as well - and that is just the actual camera.  Sakes Alive!  The purchase of a camera is a big thing, it is very costly and from what I am seeing can be very specific to the types of pictures you desire.
In the time being I want a camera that will allow me to capture the times I have with my boys.  I want something that may offer me the chance to capture the special times of my friends little ones too.  Too lofty?  Maybe, but that is what I am thinking about.  I know that there is a lot to learn about it all but for now I am snapping pictures like a fool of my little men and using iPhoto to touch them up and change them ever so slightly to what my mind's eye sees. 
Any ideas or suggestions will be welcome.
Is there a lens that you can't live without?  What editing program do you use?