Hey, wait a minute. Somebody has some bad information here.
Actually, kids can walk to and attend the church of our choice. The Baptist church is actually closer than the LDS one. There is also one other church I know of in Nephi, either Catholic or Presbyterian, can't remember which.
No, kids are not punished for not attending church. If somebody doesn't go to church, they do have to write a report on spirituality, but that is because Sunday is a day for focusing on one's spirit. The parents were fully aware when they sent their kids to the Whitmore that it was Christian, and therefore should know that church or spirituality of some type was going to be required. And if they didn't know, they obviously need to call 1-800-ABCDEFG for some Hooked On Phonics.
I do know we are allowed to go to these other churches, because guess what, I went to the Baptist one quite a few times when I attended Whitmore! It is right on Main St, one block from Whitmore, check it out online if you don't believe me! It may be a small town, but even small towns have more than one church.