Lynn:
I almost never use auto (never say 'never'). However, I do use aperture and shutter priority settings often. It all depends on the shot. I use a Canon, but I believe Nikon was the same settings.
Full manual can be useful in difficult lighting settings.
I am sure that many people never take it off AUTO and are thrilled with their pictures. Also, remember if one shoots in RAW format, much can be done to the image afterwards in the computer.

re: lenses. Auto has nothing to do with the choice of lens. That is a focal point and quality decision. Some lenses are just better than others.

I have seem some fantastic images taken with small point & shoot cameras.

Thanks for the nice words.

Doug