If you don't go for this deal and your friend would be interested in trading for a Digital Rebel with three lenses, let me know. I'd make the trade in a heartbeat. I'd toss in a couple of memory cards, a remote...everything I have tied up in the Rebel system. I'd even throw in an adapter that would let your friend use Nikon lenses on the Rebel. (Stop-down metering only, but at least old manual Nikon glass will meter on the Rebel.)
Why would I make this trade? Because digital has uses, but not for the work that I'm doing today. The Rebel's just an expensive toy that I never use. For others, it's a great system that delivers images they want. But I'm spending all of my time with film these days, and I'm very happy.
You'll have to make this call based on what you want to do. I'm in no way anti-digital, but I really have no use for it in the creative work that I do. Only you can decide if the same is true for you, or if you can be happy with the D70.
Good luck with your decision.