My 12 v X2 drill has Nicads there is nothing wrong with that except the recycling thing. Home Depot will take care of that when I bring them in for replacement under the lifetime warranty. Here is a link with some comparisons on the two battery types.
http://www.buchmann.ca/chap2-page4.asp
I think Nicads are better for power tool use. I notice NiMh batteries die very suddenly where the Nicads wind down slowly. After using my drill a lot this past week I am very happy with the way it works and handles, it is a good tool. The locking carbide chuck is much easier to work with than the non-locking. It is a solid tool, and with the lifetime warranty and the price paid, very satisfying.