A hand-supportable digital image capture and processing system including a hand-supportable housing having an imaging window, and an area-type image formation and detection subsystem having image formation optics for projecting a field of view (FOV) through the imaging window and an area type image detection array having a snap-shot mode of operation for forming and detecting a 2D digital image of the object during each image acquisition cycle of the image detection array. The system includes a manual trigger switch integrated with the hand-supportable housing, for generating a trigger event, indicative that a code symbol on the detected object is aligned with the visible targeting illumination beam and is ready for illumination and imaging. The system includes an object targeting illumination subsystem for generating and projecting a visible targeting illumination beam within the FOV, in response to the generation of the trigger event signal. The system further includes an LED-based illumination subsystem which is responsive to the second triggering event, for generating and projecting a field of illumination through the imaging window and within the FOV so that light transmitted through the imaging window towards the object is reflected off the object and detected by the area-type image detection array within the hand-supportable housing. An automatic illumination control subsystem controls the operation of the LED-based illumination subsystem during object illumination and imaging operations, so that the targeting illumination beam is momentarily ceased when the LED-based illumination subsystem produces the field of illumination within the FOV.