The D70 with that 18-70mm lens is a great combination. You will certainly enjoy not only the ergonomics of the camera, but the image quality as well. The 18-70mm is by far the best sub-$300 wide lens for Nikon DSLRs, as it is built well, gives sharp detail with little distortion, is faster than all other sub-$300 (f/3.5-4.5 instead of 3.5-5.6), excellent lack of flare issues in direct sunlight, and uses the AF-S system, including the focus distance scale. An amazing "walk around" lens coupled with an amazing camera will surely keep you happy.
I was happy with my D50 and 18-70mm for a year until I had to sell it. Now that I am getting a D80, I am also going with the 18-70mm. It served me so well that I just had to get it again. You might want to also pick up a 55-200mm VR lens to go along with it. Although it is not built as well as the 18-70mm, the results are still great, plus it's a zoom with VR for only $200-$250. If you want a zoom that matches the quality of the 18-70mm, go for the 70-300mm VR ($450-$550).
But who cares what I say, you've been here a while lol I'm sure you know these things