"That's Nice" can be used as another term for "Fuck Off", usually suggested when your being annoyed and couldn't riotly give a fuck.
Person A : "Omg..omg..omg - guess who just asked me to senior prom" ??
Person B : -" Ermm....Who" ??
Person A : "Your ex - who left you for me then suddenly ditched me" !
Person B : -"Ha...That's Nice" !!
Southern Belle #1: "Look at this ring my husband bought me!"
SB #2: "That's nice."
SB #3: "Look at this fur coat my husband just gave me!"
SB #2: "That's nice."
SB #1: "Why didn't your husband get you anything?"
SB #2: "Well ...he did send me to finishing school..."
SB #3: "Why'd he do that?"
SB #2: "...So I could learn to say THAT'S NICE instead of FUCK YOU!!!!" :)
Cleveland ~ Ohh Peter, that tickles me in a way that if Loretta tickled me in that way, I'd say 'Oh yea, that's nice, that's the spot.'
Cleveland ~ I promised Loretta I'd trim the bushes then get tender with her.