Yes, it's NiCD, but that's still not necessarily a bad thing, and they work with DeWalt Lithiums if you buy them later.
Yes, Lowe's marks this down to $250 all the time. Still, it's a great kit for the price. I have it and enjoy it.
The porter-cable set they have on sale would probably work fine for most homeowners. Buy this if you enjoy having a bit higher quality tools with a better name brand.