Even though it is now over 8 years since the D70 first came out, there are very few compacts that can match it for image quality, certainly not under $400 anyway. With a good Nikon lens, such as the 50mm f1.4, the results can still be exceptional.
I loaned my D70 and the 50mm to my brother in law, and compared to his reasonably nice recent Panasonic compact, he was shocked at how good the results were with this combination. You can pick up a D70 body for about $150 nowadays, which in my books, is amazing value.
Here's an image from the closely related D50 that I shot in Spain at the magnificent Sangrada Familia Cathedral about 3years ago.