look. things just arent as bad between m$ and Apple as the media would like to make out.
Yes, things are somewhat shaky in certain markets between them. Yes, they are both competing for the desktop market again, with Apple truly going after the m$ desktop jugular. No, I don't think Apple is going to go after them with Appleworks.
That would be an insanely stupid move. Right now Apple is touting one of the major bonuses of OS X as the power of UNIX with the ease of use and software support of a major desktop OS. Like it or not, M$ Office is the critical suite for desktop productivity in business. To lose this support would be a severe blow to the marketability of OS X. To deny this support would be an even worse blow. Appleworks would just be viewed as yet another proprietary and uniplatform solution and would directly negate their claims at interoperability. Apple needs M$.
Also, m$ needs Apple. This has been known for a while. M$ still needs to keep up the appearances that they are a good business citizen and that they are not abusing the monopoly powers that they so obviously have. As long as Apple can be a true competitor to them, it will be good for their image as a competitve business.
They will have their little fights, their pissing contests, etc. but they both need each other more than they will publicly admit. I think we will see that, even tho it looks worse and worse, we are going to see the same if not better software support coming out of m$. It just makes economical sense.