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 APS-C is actually less than 50% the size of 35mm film (864 square mm vs. 370 sq. mm.), not 2/3rd's as indicated.  Due to lens geometry, the crop factor is 1.5 times.  You can run a simple web search and see this--it's just that the camera companies want to obfuscate this fact.

Older lenses (both AF and manual focus Nikons anyway) work great on FX full frame digitals, like the D700.  It's not like Nikon discontinued all of their AF-D lenses (some of which date back to the1980's or before like the 50mm) as soon as the D3 came out.  And older Nikon AF lenses, especially used, will be MUCH cheaper to buy than the newest Nikon offerings with all their new tech-wiz-bang. And if you are upgrading from DX, older lenses are often cheaper than their DX cousins as well.  Yes, new Nikon glass is nice, but older lenses work fine and are a great alternative.