Do 5 megapixel digital cameras produce good photos?

Yes, they certainly can. It depends on how large a print you want to make, the quality of the lens used and the physical size of the sensor. Any one meg camera could make great 4x6 or 5x7 prints. In fact, many could make great 8x10 prints. The quality of the lens is, of course, a factor in ANY photographic discusssion. The size of the sensor is important because this determines the actual size of the individual receptor sites on the sensor. This is why a professional DSLR with a 24x36mm sensor and 10 million pixels produces a much better image than a camera phone witha 1/8 inch sensor and claiming 10 meg.

So, the question really is, which 5 megapixel camera are you asking about?