Nikon USA (the authorized distributor in the US) is currently offering a $200 rebate on the D70 w/18-70mm lense. This offer runs through March 31. Any reputable dealer will be selling the D70 kit for $1299 and have copies of the rebate form. That makes the effective price $1100! A great deal and the lense is a must have with this camera. You must provide a copy of the bill-of-sale, the warrenty card, and serial number from the side of the box to get the rebate. Word of warning: dishonest dealers will offer a low-ball price without all of the parts (battery, lense!) or "grey-market" import without US warranty; neither is worth dealing with.
Point-and-shoots like the Powershot and little Nikon we have are very convenient. The big plus to the D70 (or Canon Digital Rebel or 20D) is you get GORGEOUS pictures from the big sensor and you get a way into the whole SYSTEM of accessories. Things like better flashes, other lenses, remote shutter release, etc. If you have any recent gear from either company, pick that digital SLR. I have used the D70 and it has goof-proof auto modes plus full overrides and manual control for personal creativity. The D70 is FAST and handles like a film camera! No more missed shots. Check one out.