I use a D80 (I think camera is very important in this discussion; I want to make sure we're comparing oranges to oranges).
I used to be terrified of boosting the ISO, coming from digicam use. Just this last few months I have enabled Auto ISO and been very happy with the work.
I find I work best with Auto ISO enabled, but I'm very fast to turn it off if I have any time. I've been doing a lot of street photography lately, and I find with that its best to let the camera do what it wants on the first shot, and I can change things for the second shot; otherwise what I'm trying to get gets away.
As far as high ISO, when exposed properly I have been very happy with the restults.
Here's an example, Auto ISO, shot 1600 on my D80 that I don't find the noise distracting: