I also use the D70s for making my pano's and for still shots as well. It is a good camera. I know a proffessional portrait photographer who uses the D70. I asked why he uses the D70 and not the D2 series. He simply showed me some sample portraits "prints" that were just stunning. He said he could have 3 of these cameras, which he has for the price of one of the D2 series. He has been in the business for over 30 years.
When you move up the line to the D200 and D2 series you are getting a better built body and a "few" other features that would be important to some pro users. The D200 has a magnesium alloy body with environmental sealing. Good for use in harsh situations like humid or dusty locations. Also they shoot at 5fps to 8 fps. This good for news and sports photography.
The D200 has the same kind of CCD as the D70 except it is 10.2 megapixels and it uses newer image processing that comes with the D2 series.
The D70 is a very good camera for making pano's. The price vs features is what makes this camera the best buy.
My next camera purchase will be a Canon 5d or the Mark II. These two cameras have full frame sensors with no cropping factor. Higher megapixels and the undisputed quality of construction with full environmental sealing much better than the nikon. I want to be able to take my camera anywhere from the woods to a fishing boat. Creating interesting panos sometimes requires being in hot/cold, humid, dusty, or other situations like this. It is my opinion that Canon makes a better constructed camera and they are always on the cutting edge. Nikon seems to always be second at this.
I think studio and portrait photographers prefer Nikon where adventure photographers and others who do a lot of outdoor assignments prefer Canon.
The D200 will make great panos for sure. It will also serve you well with standard photography. It is a question of what you will do with the camera when not making panos.
If you want an affordable DSLR option for making pano's then the D70s will do quite nicely.
General Lee
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