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 upon an object within the FOV, and forming and detecting 2D digital images of the object on an area-type image detection array. The system includes an object presence detection subsystem for automatically detecting an object within the FOV, and generating a first trigger event indicative of automatic object detection within the FOV. The system also 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 first trigger event signal. A manual trigger switch is integrated with the hand-supportable housing, for generating a second trigger event, indicating that a code symbol on the detected object is aligned with the visible targeting illumination beam and is ready for illumination and imaging. Also, the system includes an LED-based illumination subsystem, 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 and reflected/scattered off the object and detected by the area-type image detection array within the hand-supportable housing.