Calling it a Pocket Rocket might be too much. It's even bigger than the D60, which it does apparently not replace. And the articulated screen is not as well thought out as on the Olympus E-620, which has in-body IS, something Nikon doesn't.
But! I downloaded the high-ISO samples at www.imaging-resource.com, and it's good... very good. Only jpegs obviously, but they are better than the D300, easily two stops better than the Olympus E-30 and nearly one stop better than the Canon 500D. This being an amateur camera, I'm sure they've added all kind of noise reduction tricks that takes away some detail, and that was clearly visible in the shadow areas, but it's impressive nonetheless. No D700, but for a third of the price and half of the weight, it's certainly a nice suplement.
It won't meter with old lenses, it will only AF with AF-S and it has a small viewfinder, but it has 11 AF points and lots of goodies. My decision to buy the E-620 is in danger
Did I mention the 10-24mm f/3.5-4.5? They've launched Nikkor a 10-24mm f/3.5-4.5 as well