There are many people that have wrestled with this problem.
And only you can decide.
The 8800 is a lot of camera with a long lens and image stabilization. If you look at a DSLR camera to have the same capabilities, it will cost you twice as much.
The DSLR offers the best in manual controls, and will have the least noise when the ISO is increased. It will outperform the 8800 when it comes to low light action shots.
How about this:
Get a less expensive camera that has a long lens and image stabilization:
Panasonic FZ4 or FZ5
Kinica Minolta Z3 or Z5
Canon S1-IS or S2-IS
Buy your D70 or the newer D70s with a lens that covers the wide angle to about 70mm range.
Then you have the best of both worlds.
I am trying to choose between these two digcams. I take mostly family shots and vacations with a sports activity thrown in from time to time. I want a quality photo with the ability to pull in on a shot when needed. Having always been a SLR film buff I favor the solid feel of a dslr or something like it.
I am currently taking the d70 for a test drive and I am enjoying it a lot but with my shooting needs I am not sure that this may be a little more camera than I need. Any suggesstions from the experienced?