As someone taking the plunge from digital compact into digital SLR for the first time, this camera strikes a great balance between ease of use and more advanced functions, and at a pretty unbeatable price.
I went round plenty of places (John Lewis, Jessops etc) to get different viewpoints on the packages available (especially Nikon D50 v Canon 350D), and everyone seemed in agreement that the Nikon represented best value for money. The only negative mentioned was that it takes SD rather than Compact Flash, but I haven't found this an issue at all. I've bought 2 1GB cards at which will store over 600 photos in JPEG fine mode (the most memory-intensive format other than RAW).
The battery life is excellent, have taken c.200 photos so far (about half with flash) and still showing full charge. Controls are well laid out and easy to use, and adapt very well to the skill of the photographer: from 'point and shoot', through pre-set modes, to setting ISO/shutter speed etc for the more advanced users. The photos I have taken in 'auto' mode have been great, and the camera allows you to grow with it as you learn more about using an SLR and need more of the available settings.
Transferring and editing them is fine - the software provided does the job but more advanced users would probably want something a bit better (Photoshop etc).
All in all, I did plenty of research and couldn't find anything that I thought would represent a better DSLR package. I haven't been disappointed.