Community and User Generated Content Website: Have been thinking about Drupal but leaning on WordPress heavily

First: (Really!) get someone who understands a lot about code & wordpress. As you’ve already read Mike Schinkels site: He’s a good one.

can I scale the website without worrying too much into maintaining the technical aspects of the site?

If you, as i stated above, got some who makes you a solid foundation, then it should not be a problem.

Displaying content – Can I display say, in a page, a thumbnail and excerpt, of content that is being posted to the site? and perhaps in another page – only a set of links of content that is being posted. – Do plugins exist for these? Drupal hs Views, CCK and Panels that achieve these quite easily.

WordPress uses “Templates” for pages. You can make a eg. site where you list all galleries or receipes, etc. With Multisite you can give every of your users the possibility to run their own blogs/receipe article lists on their own.

Without going more into detail: If you’re not tech savy, then you’d need a long time to get around this, so my best advice is getting someone who understands how all the custom stuff for cms purpose like post types, taxonomies, meta boxes, etc. work.