Today Nikon introduced the D80, their new 10 mp digital SLR. The body alone will be $999 and the kit (w/lens) will be $1299. This was exactly the pricing of the first D70 which I bought when it was first introduced about two and a half years ago. The kit lens sounds like a dandy: AF-S DX 18 - 135 mm F3.5 - F5.6G ED (27 - 202.5 mm equiv. FOV, 7.5x zoom). It is one of two new lenses being newly introduced. The other being: AF-S 70 - 300 mm F4.5 - F5.6G VR (105 - 450 mm equiv. FOV, 4.3x zoom).
This camera will produce an image of 3872 x 2592 compared to the D70's 3008 x 2000. If you have all your dials pointed in the right direction this should produce a devastating image. Especially considering where we were in the cost / quality equation just five years ago.
So, I wish I had one but I don't and won't. I have another seven and a half years to go on my D70. By then cameras will be an attachment to our contact lenses.
You can get all the details here including a side by side comparison to the D70s:
http://www.dpreview.com/articles/nikond80/