What will give me the best image quality?

I'm going backpacking in Europe for a few weeks next summer and I plan to bring my dSLR, a zoom lens and a prime lens with me. Currently my best option would be to bring my Nikon D60 with my Nikkor 50mm f/1.8D and Nikkor 18-55mm VR lens. I want to know if buying the 16-85mm would make much of an improvement, and if so will it be worth it?
Also there's a great sale in town for a Nikon D7000 and the Nikkor 18-105mm VR lens for 1000$. Right now I'm debating making this purchase because I think a better lens will bring me a better image quality then purchasing a NEW body with the kit lens.

I'm also considering buying the Nikkor 35mm f/1.8G prime lens to bring with me instead of my 50mm prime. I believe the 35mm lens will be more handy indoors than the 50mm.

Anyway I just want your thoughts on that subject.

Haha