In short, I do have problems with it. It's my first digital, so these may be problems with all of them.
The shutter waits. sometimes to the point of me losing the shot, and I HATE that. Not for a day at the races.
It has a serious red eye problem, even if the subject's eyes are turned away from the camera. Get yourself a Nikon speedlite if you want people shots, the built in flash is worthless.
The 8700 pushes red to bleeding levels. Photoshopping is almost necessary for red images. This one was photoshopped for less saturation.
Downloading from the camera drains the battery 4 times as fast as shooting with a flash. Get a firewire or USB-2 reader.
Some exposure modes, like aperture/shutter priority result in a MASSIVE amount of noise or artifacting, probably due to the ISO increases mentioned above. Bracketing may help, but not with Suzie doing somersaults or Johnny saying "Hey! Watch me!". Sorry about the big picture. Look at the jaws and necks of the two boys here. This is typical for 400 ISO. This also has been PS'd to reduce noise, which cuts the sharpness, but most of the noise remained.
That said, it certainly feels good in the hands. It's lighter than my film cameras (SLRs), it has a Lens hood for $25, and a selection of 4 filters for $120...not bad for Nikon prices. The menu is all on the little TV screen, which is certainly better than the LCDs that have been on film cameras recently.
I'm happy with mine, generally. I'm just still on a learning curve with it.