I actually have a couple pretty good prints made from my old 5mp PnS camera - the one that I was generally not very happy with. One is a shot of my wife and son sitting on Main St with the castle in the background, and is printed straight from the camera, the other is a shot of my son in his rally car driver outfit perched on the back of my rally car-inspired street car holding on to the spoiler - that was was actually printed from a 1280x1024 jpg and looks surprisingly good.
These are largish prints, 17" on the short side IIRC, printed as promos on a $100k+ Canon printer.
Do they have the clarity and sharpness of prints from a DSLR? No, of course not. But I was pretty impressed at how well they did turn out - certainly plenty good for casual viewing despite the larger size. I'm sure it didn't hurt that they were both bright, outdoor photos - but you can get fairly nice larger prints from a PnS, as long as you keep your expectations realistic.