Yeah, B&H now has the body only for $600 ($599.) Also, look at some of the combos they run, last month they were selling body only for $650 and body + 1 gb card for $675. Now the body only has fallen but it doesn't appear that the combos have changed much.
In the UK the D50 was offered until recently with a £50 cashback offer. This is a sure sign that a new model is around the corner and/or there will be a price reduction soon! Still a good deal for me at the UK price (£479 includes £50 cashback). Chris Lowe
The D50 is still a fair bit cheaper - the D50 with the 18-55 lens is about £100 cheaper than the 350D with a similar lens. That's a significant difference on cameras that only cost £500-ish.
And while the 350D is better specified, and not only in megapixels, the D50 seems to be better constructed and better ergonomically. That's not going to help people who decide which camera to buy by reading the spec sheets, but anyone handling both cameras is going to realise that the D50 is a better camera in some ways. I'd choose it if it was the same price (and that's not because I've got some nice Nikon lenses I want to use with it - all my nice lenses are manual focus and the D50 won't meter with them )
I've just ordered a D50 with the 18-70 lens (the one normally supplied with the D70s) from Jessops, for £582. I've not seen anywhere else selling the D50 with this lens, but it seems like a good combination - still significantly cheaper than the D70s, but should offer similar picture quality, whereas the 18-55 lens is, though pretty good for the price, definitely inferior.