Hi picsmad, welcome to TPF.
I have a 350D, and really only have two criticisms.
However, before I go into those, my reason for buying the 350D was purely based on the reviews I had seen comparing it to the D70 (the D70s was not out at the time), and for the most part the 350D seemed to be the reviewers favourite.
Now onto my criticisms:
Firstly the size, Since I was an idiot and bought online without actually holding each camera, I didn't realise the physical size of the 350D was going to be a problem. I didn't think I had overly large hands and the reviews all said that people with medium hands wouldn't have a problem - so I bought it. Unfortunately, I was wrong. The size is such that I could only hold the camera with my little finger and part of my ring finger overhanging the bottom of the camera - this made holding the camera steady a fairly difficult task.
However, since I bought the BG-E3 battery grip, the size is no longer an issue. The grip adds the size and balance I think the 350D should have had to start with. At £100 it isn't a cheap fix so to speak, but is a worthwhile investment for the reasons stated above, but also for the fact that you can have 2 batteries, and storage permitting, you double your picture time in between recharges.
My second criticism of the camera is the rear screen.
Many is the time I have looked at the screen and thought I had a good picture, only to find when I got home that the picture was not as good as I hoped - either I had camera shake blur or my focussing was not quite right or something similar. Only when I put the picture on my PC can I really tell whether the shot has worked or not. This doesn't happen so much now that I have a good walkabout lens with IS, but even so, I still take a few extra pictures after I think I have a "good shot" to make sure I have one I like.