If you have no interest or use for any kind of wide angle coverage then the
24-120 lens is clearly superior.
However the 24mm lens on a D70 will have the effective angle of view of
about a 40mm lens or longer (allowing for a bit of cropping).
I would not be happy with this as the widest angle lens I had available.
The biggest usability problem with these small dSLR sensors is getting high
quality wide angle lenses.
Because the camera design is locked to the 35mm SLR form factor there is
only a little room for fudging the size of the mirror box to allow for
producing reasonably priced, but not necessarily very high quality,
retrofocus lenses in the sub 24mm effective focal length range.
The D70 kit lens may not be a world beater but the price makes up for its
deficiencies.

Th 24-120 has an odd sized filter thread so not as compatible if you
plan to get other lenses & attachments. As mentioned the wide angle is
the toughest thing with DSLR's & you'd have to spend $1,000+ on a second
wide angle in addition to this if you felt the need later versus the kit
which is probably good enough. So it's a great all purpose lens but you
might end up wanting a wide angle plus a telephoto & with the kit you'd
only be missing the telephoto. At that point you could get a killer VR
tele & have a really nice setup. If you'd be inclined to use a tripod on
a future tele & not in need of wide angle, get the 24-120 & an
affordable tele without VR & the same optics. Also the kit lens is super
small if you hesitate to carry a bulky lens around the VR is
substantially bulkier. I'm just getting into this but here's my notes on
lens selection: http://www.edgehill.net/1/?SC=go.php&DIR=Misc/photography