to create a web site, but then so can MS Word.
HTML can be written in any application that handles text, because that's all it is - text in a special format.
Not everyone can write HTML however, and many people have no desire to try - hence the advent of the WYSIWYG web design application. WYSIWYG stands for What You See Is What You Get, and broadly speaking that's how easy it is to design a web site using FrontPage, Dreamweaver, or any one of the dozens of applications available - including Microsoft Publisher.
I've nothing against Publisher, it's a great product, and I use it often - mainly for teaching Desktop Publishing. You can use it for web design, and many people do, but if you want to progress beyond the basics you'll find yourself being frustrated by its lack of 'serious' features.
The straight answer to your question (after all that) is 'yes' MS Publisher - particularly the latest version - can produce reasonable results, so off you go, and perhaps you'll let us have a look at your site when you've finished it?