There's nothing inherently wrong with NiCd batteries, but they're not that great for seldom-used devices. You could probably revive the pack with some finagling, but it's probably not worth the trouble(?) - it will just take time. You need to get the pack cycling if you want to revive it. Charge it for 24 hours, use the drill until it starts to weaken,
not until it's totally dead. Rinse and repeat this, and you will likely eventually recover the battery. Probably take a few days to weeks, anywhere from 2-12+ cycles to recover full capacity. Yes, the first few discharge cycles will be very quick.
You probably won't have the same issues with Lithium Ion.
I use the Black and Decker 20V lithium ion drills in a commercial setting, and they're fantastic for the price. This guy, but you can find it cheaper:
http://www.amazon.com/Decker-LD120VA-20-Volt-Lithium-Ion-Accessories/dp/B006V6YAPI
We've had one die due to trigger failure - to dis/assemble, each hybrid battery has ~100 bolts and screws. They're not ultra heavy duty - you will break the chuck bolt if you try and use the drill to unscrew bolts that the motor can't get by itself, but replacements are available, part number 149518-01.
Drills currently in use, manufacture year-week:
29-2011
31-2012
31-2012
31-2012
13-2013 (Bought Refurbished)
24-2013 (Bought Refurbished)
Batteries:
28-2011
25-2012
25-2012
25-2012
12-2013 (Aftermarket 1.5Ah)
15-2013 (Aftermarket 1.5Ah)
All basically in use 24/7/365 for the last 4 years. I'm actually shocked that the batteries have lasted as well as they have, even the aftermarket ones.
If you want to spend a little more, the DeWalt lithium-ion are great and heavier duty.
http://www.amazon.com/DEWALT-DCD771C2-Lithium-Ion-Compact-Driver/dp/B00ET5VMTU/
We use them for the automotive side of things. Not nearly as steady use, but they can break much tougher bolts loose, and the batteries/drills are circa 2012 with no problems to report.
If Eneloops can hold their charge for 7+ years unused, and can withstand 2,000+ recharges, why cant they make a good tool battery?
10x AA Eneloop would make an 18v 4ah battery for ~25$.
10x AA Eneloop would make a 12V, 2Ah pack. You would need 30 cells to make an 18V, 4Ah pack.
But there's no reason why low self discharge nickel cells wouldn't make a good tool battery, but they're more expensive than regular nickel cells, so it's just that much harder to compete with lithium's Wh/kg.