For most casual users I think iWork + Google Docs is actually OK. However, if you need some of the more complex or professional features with full document compatibility, iWork isn't going to cut it.Microsoft Office is way better for both casual and professional users. Google docs gets really slow and sometimes freezes especially if it is a long document. I never liked iWork because of the lack of various tools that were offered on MS office. Also MS office offers way more templates than Apple or Google.
In my house I haven't bothered to put Office on my wife's and the kids' Macs, partially because I don't have enough licences but mainly because they just don't need it. The tools you mention are things they wouldn't use anyway. They're fine with iWork and/or Google Docs. Maybe in the future when the kids move on to bigger and better things, they'll need Office, but right now and for the foreseeable future, they don't. However, for me, I'm about 80% fine with iWork, but I have a bunch of existing Office documents and I work with institutions that are strictly Office, so I have Office on my machines. My main issue with iWork is just that I'm less familiar with it, so sometimes I have to look up online how to do things in the iWork way.
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