I've got a Canon 300D (Digital Rebel). Your impression is right, most local places will sell the low end DSLR's (Rebel XT) for a bit over $1000 right now. Not sure what the Nikon equivalent is at the moment or its price.
I should clarify though, even if you find a used digital SLR that's getting dated, like a Digital Rebel (300D) or a 10D, you're still getting a very capable camera that many folks have put out TONS of great pictures with. I think my camera lacks, but I'd still recommend a newbie to buy one because it has what you need to take good pics and learn with.
I'm not sure what the market is for a used 300D, but I'm sure it's not too bad. I bought mine for 1000 bucks but it came with the kit lens, a 50mm 1.8, a 55-200mm and a 1gb SanDisk Ultra II compact flash card. I bet you could find a body + kit lens for between $600 and $800.
Here's a few snaps I took, if they're bad it's not the camera, it's the user
So again, my suggestion is to buy a used one! I'd look for a 10D, post a wanted ad in the photo-lab buy-sell here and look around in other buy/sell's! People are always upgrading and camera bodies seem to buy and sell pretty quickly, there always seems to be a buyer.