I work in a photolab and have shot the d70 and personallt own the 300D.
I shoot mostly portraits/weddings and i'll say for that application the 300d is great. There are a few things I find annoying, 1st, that's it's silver (i don't have the skill to pull the thing apart, paint it, and put it back together) d70 is black (sometimes Nikon marketers get it right). And it doesn't have flash exposure compensation, which was a huge issue for me as it underexposes by about 2/3rds of a stop if you're using the 420EX or less. There IS a firmware hack out there though and it works like a charm.
The d70 is a lot more expensive, and the Nikon processor just sucks compared to the 300d's, looking at sample shots between the two you can see where the processing is failing. But you can get Nikon lenses, and even old cheap super sharp fixed lenses which would be nice.
The lens that comes with the 300d is a necessary buy (as opposed to just buying body) unless you have big bucks to fork out for a pro super wide angle. And you will definately want to get a different main lens. I just picked up the 28-135 IS USM and it's a blast, I don't have to do nearly as much sharpening as I used to and it allows me to shoot handheld at 1/10 it's great. The 300d is a great camera, but if you use flash a lot I would highly recomend downloading the hack, Canon really missed the ball on that one.
These are shot with the IS, heavy postwork but very little sharpening.
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This was shot in a dark, dark club at ISO 400 handheld at 1/15th with the IS on
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