The Nikon D80 is a class apart from its nearest competitors, which would be the Canon Eos 400D, the Sony Alpha 100 and -to some extent- also the Nikon D40/D40x.
True, it is more expensive than the Canon and Sony, but this camera seems to have a better build quality, it looks and feels more solid. Also it fits into my hands really well, I've got big hands with sort of slender fingers. With smaller hands the EOS 400D (digital rebel) could be more comfortable.
Also with this kit, you are getting a very versatile lens: 7.5x zoom.
To the reviewer above: By using Aperture priority you can make the background blurry, so that the eyes are drawn to the main subject. Actually things like that should be in the manual too I suppose. Personally I seldom read manuals though.