In short, nup there is no camera settings you've missed.
Unsharp mask consists of making a separate luminosity layer, applying a gaussian blur to that layer, and then overlaying it with the original and highlighting the edges to make them more pronounced. All this is done for you by photoshop. The complexities of which are why simpler sharpening algorithms do not work as effectively.
If you've ever been unfortunate enough to shoot a Canon, you will note just how lacking in finer details your images contained prior to applying USM - it is then that all of a sudden details seem to 'pop' from nowhere.
Because of the superior design compromise employed by the talented engineers at Nikon, you end up with a sharper image out of camera from your D70, but still USM is beneficial in extracting edge contrast.
Basically, it's the way our eyes function. Humans perceive depth by virtue of having two eyes slightly apart on our head. The camera removes this cue for depth perception. Thus, the eyes are now reliant upon only edge contrast to differential where one object ends and the other begins, to separate foreground from background. USM assists here quite nicely.
Also helps is depth of field. Having infinitely DOF in an image generally confuses the viewer and overwhelms the eyes, for we do not normally see everything in our field of vision rendered sharply - only those which the eyes focus on. However our eyes have the advantage of scanning portions of a scene 40 times a second or more, and to conclude that only the salient object is rendered "in focus" to us. Hence the limited depth of field employed for wider lens apertures in some way mimicks our visual system by artifically restricting the scanning process to only the subject which we want the eye to focus on.
Much of this has nothing to do with your original question, which is probably a sign of my bedtime. Nighty night.