120mm corresponds to only slightly more zoom than the typical point and shoot's 3x zoom in terms of where you stand and what you get within the frame of the picture.
It does take some math and photographic know how in order to relate the mm rating on the digital camera's lens to the amount of zoom. But most cameras specify the 35mm film camera equivalent lens focal lengths in the zoom ratings, typically around 35 (widest) to 105 (maximum zoom) for a digital point and shoot.
I would use it a lot. Mine has a 35 to 140 mm equivalent zoom.
Digital camera hints:
http://members.aol.com/ajaynejr/digicam.htm