Sure, no problem. But with all the ribbons menu shizzle that takes up much of the screen in Office, there might not be much left of your document to work in
I just dropped the resolution on my 15" MBP to 1024x768 and loaded up Word 2011 Beta 6, and it worked fine. You may want to hide the ribbon to get extra vertical real estate, but even if you don't, it looks like it will be fine.
No problem at all -- I expect some 11.6 users may move their dock to the left, and gain equal-to a 13.3" user that leaves the dock on the bottom and shown.
I tend to keep the ribbon hidden in 2011, since it only takes 1 click to get it back, and if I'm not using all of the tools, I don't need to stare at them instead of my content.