I have never tried timelapse with this camera. However, I can say that battery life is just not that great in my experience. Several times batteries just died in the middle of shooting. Good luck with that.
For the price of middle of the road P&S price, you get a fantastically capable high-end P&S camera. The image quality of this camera was never in question, just check with various photo gear sites. It was the slow RAW write time and focusing inconsistency that caused this camera to get bad reviews. The firmware update effectively corrects these problems.
Only thing lacking about this camera is 1080HD video capability that some of the newer and even cheaper P&S cameras have.
It does not get the firmware update through the USB cable. You have to download Version 1.2 (Dec '11) from the Nikon site to your desktop then click and drag it over into your SDHC memory card. If your computer can't read a SDHC card directly, you'll need a card reader. Then put the card into the P7000 and scroll around to find the firmware update. The camera will take it from there. FYI Ver. 1.2 does contain all that was in Ver. 1.1.