I understand the XTi is a good digital camera. What is the next best digital camera above the XTi? Why is it better?
Hmm lets start from the closest…
30D for speed, 5D for imagine quailty, MK-III for imagine quailty and speed, Hasselbad for that 32MP…. lol jking
For serious uses the 30D or the D80 would be the next level up. I would personally take the 30D over the D80 though.

If you are not hung up on the Canon brand name I would say the Nikon D40 or D2x is above that Canon.
References :