The DPI setting is really just a hint. Pixels are pixels and the user can print out a 72 DPI image pretty much the same as a 300 DPI image. The pixel dimensions of the image are completely unaffected by the DPI setting. The megapixel count doesn't change with the DPI.
Unrelated to this post, but thank you Kirk for wording this so eloquently!
Rant OnEven at my school (I study photographic design) people still do not seem to always understand this and will say things like "you have to set dpi to 72 for web" for instance. Completely ignoring the fact that it's the pixels that count, not the ppi (oh, and we won't go into the dpi vs ppi discussion either, now shall we?)
Rant offSorry about that one, just had to get this off my chest!
Cheers