Did you try reading the reviews and seeing the sample pictures from here? :
http://www.dpreview.com/
Nikon D70s:
http://www.dpreview.com/reviews/specs/Nikon/nikon_d70s.asp
Nikon D50s:
http://www.dpreview.com/reviews/specs/Nikon/nikon_d50.asp
I did not choose Nikon, because the value for the money was simply beyond my reach for the features I wanted.
I settled for a Panasonic with a Leica 12X optical zoom, and 8 Mb raw image capability. It is not the perfect camera but, for the price, it is unbeatable.
After three months I am slowly learning its complex 80-page instruction manual.
Check out the DMZ FZ-30.
http://www.dpreview.com/reviews/nikond50/
This compares them head to head.
I have the D50.. I love it, but it was a Christmas gift so the comparison shopping was done by someone else. I trust his judgement and research skills like I trust Jack Bauer's.
Now WHY did I think of the two of you..........????
I feel your pain. I have a Nikon Coolpix. It is great for posed pictures. But I can't get it to take a decent action shot at all. All of my pictures from the Hobbit Lass's meets are just blurs. If anyone has any suggestions for stopping action, please let me know. No, I can't just run out and spend hundreds of dollars on another camera.
There is a learning curve, especially after using a point and shoot camera. Which ever camera you decide on, have fun experimenting with it. (I have a Fuji S9000, so can't help with the Nikon comparison).
The biggest improvement in my photos has been the ability to take some 500 shots and wade through them on the computer as opposed to cursing my decision on a limited number of film shots. A lot of the time my "just for the heck of it" turns out to be the better one. On a recent trip to Taipei, I took some 600 pictures and cam up with some great shots.
Firstly:
1. Both the D70 or Cannon are fine cameras. I have a D70 but if the Canon EOS 350D / Digital Rebel XT had existed at the time, I would have bought the Cannon Digital Rebel XT because of its 8 million vs 6 million pixels. The D70 tends to shoot a little dark and you will probably want to build in at least a 1/3 F stop over exposure. Cannon does I think do a bit better with greens if you do a lot of landscape shooting.
2. Definitely stick with an SLR type camera for the reasons that you mentioned in terms of seeing what you are shooting. Also if you use a polarizing filter for outdoor shots, an SLR is pretty essential to get the polarizing filter oriented properly.
3. For ordinary use, a built-in flash is almost a necessity.
4. Not all SLR viewfinders are alike in terms of apparent size and brightness. Go to a camera shop that has both and look through both the Nikon and Cannon before you buy!
5. As recommended by others, DPReview at http://www.dpreview.com/reviews/specs.asp is by far the best and most comprehensive review site. It has extensive reviews of both cameras that you should read.
6. It is also important that you go to Imaging Resource at http://www.imaging-resource.com/PRODS/EXT/EXTPICS.HTM and download the "house" pictures for both cameras. Then, spend a lot of time comparing them at various blowup levels.
7. Whichever you buy, go the DXO site at http://www.dxo.com/en/photo/dxo_optics_pro/product_comparison.php and get the standard version. It is essentially automatic and will compensate for zoom lens nonuniformities and light falloff giving significant photo quality increase with no work on your part.
8. For lens and related information, the following are very good sites:
http://www.kenrockwell.com/nikon/nikkor.htm
http://www.ai.sri.com/~luong/photography/35mm/nikon-neuman.html
http://www.photozone.de/8Reviews/index.html
http://www.normankoren.com/Tutorials/MTF7.html
http://www.users.qwest.net/~rnclark/scandetail.htm#realtoprint
and most particularly the articles (Cannon, etc) on
http://www.luminous-landscape.com/reviews/index.shtml
Good luck.
My favorite review site.
http://www.steves-digicams.com/cameras_digpro.html
Right now, Canon is tops in low light photography. Fastes ISO and lowest noise. I have a Nikon F bought in 1968 that still works, and have bought half a dozen Coolpix cameras for myself and family. They are slow.
I have a D70 and wouldn't trade it for anything. I'm sure the D50 is sweet, too. Never used a Canon. Here's a good setup to get started:
D70s or D50
50mm F1.8 (portraits)
Speedlight SB-800 (absolute must - commander mode rocks!)
Kit lens 18-70 (walking around)
70-300 (good outside at a soccer game)
Also, spend the $$$ for Nikon capture.
Get the Nikon and don't look back. If you understand SLRs, you'll have the flexibility to do just about anything.