insert into t1 (delete from t0 returning *)

in 8.3beta3

create table t0(c1 int);
create table t1(c1 int);

insert into t0 values (1);
insert into t0 values (2);
insert into t0 values (3);

If I execute "delete from t0 returning *" it deletes the rows and returns
the deleted rows. I could insert all those rows into t1 by doing "insert
into t1 (select * from t0)". I would expect to be able to do the same with
"returning *". In particular, I would expect "insert into t1 (delete from
t0 returning *)" to delete the rows from t0 and insert them into t1 but I
get a syntax error - is that expected?