The S1 does a lot of things well, but it's something of a Frankenstein camera with three different battery chambers. The electronics are relatively sophisticated, but the N60 is a discontinued entry level Nikon that isn't compatible with VR lenses. The price at $2500 plus is still too high for me to accept the compromises.
As to the 5000 vs. a D1x or h discussion, I can only extrapolate from my experience with the highly overpraised (but still fun to use) Coolpix 990. A point & shoot digital camera is still a point & shoot camera. The 5000 improves on some of my main gripes, but I'll bet the optical viewfinder is still quite poor and the LCD is still nearly worthless in bright light. The 5000 finally adds a hotshoe, but the camera still fails to support most of the features in Nikon Speedlights. My CP 990 was about $900 and that's a lot of money to pay for a camera with so many limitations - even compared to a good $250 film point and shoot.
A digital camera can easily exceed the capability of its lens. My Coolpix is in good company with quite a lot of chromatic aberation as well as some distortion and falloff for its modest 3X range zoom. The Mickey Mouse "system" of screwing converter lenses into the filter thread (or onto the adapter of the 5000) only amplifies the problems and the effective aperture suffers as well. If you're accustomed to the convenience, speed, and flexiblity of an SLR, the $1000 digital cameras will leave you wanting much more. The 5000's lens simply extends the same mediocre performance to a 4X range zoom.
A little patience is in order. If you want to get the wide angle perspective you paid for with Nikon mount lenses, full frame imaging chips have to get here. Nikon is a generation away from this in the D1 cameras so it will be a few years before 24x36 imaging chips will trickle down to a $2000-$3000 body. For now, only pros and dedicated amateurs can justify a capable digital SLR, especially considering the rapid obsolescence and depreciation these bodies are subject to. I'm biding my time for a 10 megapixel-ish full frame digital SLR that can use my lens system. I might settle for less if the price gets low enough. I might bite at a Fuji S1 at just under $2000 for instance.