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I think the entry-level DSLR designation is accurate. As a previous shopper for an entry level DSLR, and eventual owner of the e620, it is arguably one of the best entry level DSLRs out there right now (more so six months ago when I got mine), but its price range and build type/quality of it and its kit lenses put it in that range. I mean, I got a two lens kit for $800! That alone either suggests a piece of junk mid-range DSLR -- which it ain't -- or it's a very complete entry level model.
The market is really being sliced thin right now. While Oly offers the e420, e520 and e620 at the entry level tier, and only the E-30 and E-3 in the mid-range tier, Canon, Sony and Nikon have at *least* three models in every tier, with exception to Sony's high-end offerings. It doesn't mean the Sony a250, a350 and a550 are entry, mid and high-end DSLRs each, rather they're all slightly different versions of an entry level DSLR hitting different price points, with a handful of small feature differences among them.
I assume it's cheap and cost effective for camera makers to do this and there must be some advantage when it comes to the bottom line, but I think it makes consumer decisions more difficult. It's classic toothpaste marketing really. There are 50 varieties of Colgate, Crest and Aquafresh on the store shelves, to the point you can't clearly tell the difference. You're seeing it from car makers now too. Sometimes you have have too much choice as a consumer. But I digress....
I think given its price as a body, with either or both kit lenses, the build quality of each, it makes sense to consider the e620 as an entry DSLR. It's certainly better than most if not all others, but the bodies are not weather-proofed, neither are the kit lenses, they don't have metal bodies, and they do lack a few features to truly make them higher-end than that (for the lenses that means focus distance info on the lens, for the body, it means a bit more control from the body, a second dial or secondary display).
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