Only you can answer that question. Is your P&S holding you back? Are you wishing for features that your current camera doesn't have?
A newer/better/bigger camera will not make you a better photographer. In fact, in my case, having an older model that was missing standard features caused me to learn the technical aspects of photography faster. I was forced to work around the limitations of the camera.
In any other profession or hobby, you upgrade your equipment when it ceases to be of use to you. Photography is no different.
If you can name 5 things you want to do, that you can't do with your current equipment, and could do with new equipment, then I would say you are ready to upgrade.
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