Current UK cheapest price is £375 for the body. Nikon is offering a voucher book (which is almost useless)until Dec 31 . Here's hoping they offer a £50 cashback in 2006. That'll make the camera £325 and I'll probably buy one.
Even the High St stores are selling it at £399.
Have my 18-35 AF-D, which is infinitely better than the 18-55 kit lens, so would seriously consider getting a D50 body at the sub £350 mark.
I don't think the kit lens I got with mine is bad at all. In fact it appears to be able to out resolve the sensor at all focal lengths (unless I just got a good one). That said, they will probably be giving them away in petrol stations soon if the prices keep falling. Mine is still within the jessops "return for any reason" 28 day period and already the prices have dropped. I might just take it back then buy another just to get some money back.
I think it's similar to razors and printers - the money is made on selling the blades, cartridges, etc. Get a D50 at a loss-leader price, and you'll be buying lenses, flashes, etc., etc. Then in time upgrading to a D200 because of the money you've invested in Nikon accessories