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when I bought my first decent camera earlier this year I went for the fujifilm xe-1 only because I thought it looked like those old film cameras, I never knew I would enjoy street photography this much later on and for that I just love the fuji, it's compact, it's discreet, it's not "in your face" like DSLRs. the lenses are super small too.
also, about shooting people candidly, just man up and go for the shot. always remember to smile and try not to look like a sneaky jerk while doing it, most of the time people will smile back at you, I've found out that people love getting their pictures taken way more than you would think.
