Yeah, Nikon does make some decent point and shoots, although they're not pretty.
However, all the small Nikon p&s cameras are VERY "automatic", meaning I don't believe any of them offer a lot of manual control compared to some of the competition. This may be true for all cheaper digital cameras, so it may not be exclusive to Nikon. Canon's A420 or A440 (forget the exact number, but it's A4*0 series) are also quite automatic, and have 2" LCDs. If the Nikon p&s has a larger LCD, then get it. A 2" LCD is too small. They're all around $200 anyway, I think.
Try looking at Fuji, Casio, and older Sony models that are still out there. You'll never know what you'll find on sale.