I've shoot exclusively in RAW now and it takes a little more time to convert, about 10 secs per photo, but I love the way I can adjust exposure and white balance just moving a slider.
But no doubt about it, the D70 is a nice camera even with the kit lens. I don't know what I'd do if I had to choose over again. I think I like the Nikon better from what I've seen. The images just pop.
I’ve gone exclusively to RAW also. The Nikon lenses are pricey, because they have put the Auto Focus in the lense instead of the camera body....that also eliminates the ability to have true backwards compatibility with old Nikon SLR lenses (which I believe Canon has.) I am happy with the pictures I am getting, but I feel I am always disappointing myself as a photographer. ; ) Now I can’t blame it on the camera, though!