I have been using a Nikon D70 for a WHILE and really like it but found I didn't want it for everything. On vacation type trips I use it for most of the shooting at an atractoin. Last summer we went to Williamsburg and I used it exclusively at Colonial Williamburg, but not at Busch gardens or just wandering around town. For that I use a point and shoot Nikon (I forget the model). I also take the PnS with me on travell when I don't have a specific destination in mind, like when I go to LA for work. I just throw it in my pocket and go. I have been known to carry both with the PnS a backup in case the batteries crap out or I fill a card. I usually carry the D70 in a Maxpedition VersaPack. It holds both lenses, extra batteries/cards, and flash (along with other "essential devices": flashlight, multi-tool, pocket gun/ammo where legal) and isn't instantly recognizable as a camera bag. The one drawback is it doesn't havet hepadding of a dedicated bag. I also have a backpack i got MANY years ago in Oz that the bottom is a camera bag with padding that hold other "stuff."
The oldest is getting pretty good with a camera and spends more time with my D70 than I do now. I'm looking into getting a D3100 for Christmas and I'll give her the D70. The advantage that the Nikons have is lens compatibility. I can use teh D70 lens on the oldest's E and F series 35mm bodies and vice versa. You may loose auto-focus doing that but it's better than not getting the shot at all. Firend at work just picked up a D3000 at Best Buy as a kit for around $1000 that included a 28-55, 55-200 lenses, bag, card, and the insurance plan. the D3100 has a better processor and pixel rating but is about $2-300 more for the same package.