The processor has nothing to do with image quality. That comes from the sensor and the lens.
The biggest improvement in IQ comes from using decent lenses.
Apart from less noise, better colour, processing speed, buffer capacity, power consumption... http://en.wikipedia.org/wiki/DIGICHoppyUK said:Apart from less noise, better colour, processing speed, buffer capacity, power consumption... http://en.wikipedia.org/wiki/DIGIC
I'm actually intrigued as I didn't think the processor made much difference!
But I guess when you look at it as a signal amplifier (which it is) it makes sense.
I suppose it's the same difference as using poor speaker cable in your home cinema system against top notch speaker cable...