Having nothing to do with the pros/cons, it's interesting that the iWork brand name persists in common usage when Apple stopped bundling Pages, Numbers, and Keynote as a suite named "iWork" in 2013. It's true that apple.com/iwork still exists, but the emphasis there is on the individual apps, not a bundle. If you don't search for "iWork" at apple.com you won't find your way to the iWork page. At apple.com/mac the various bundled free apps (Safari, Photos, iMovie, GarageBand, Pages, Numbers, and Keynote) are listed co-equally, with no sub-categorization into Work or Play. You won't find an "iWork" category in the various App Stores (although, again, the search word works fine), the web app versions at iCloud.com are freestanding...
Bundling makes sense when there's money to be made. Microsoft sells businesses on buying a bundle for every employee, regardless of whether their particular job role actually requires it. Equip employees with only those apps they need? Sacrilege! The same used to hold true for Apple - if Microsoft had a bundle, Apple needed to offer one, too. But once Apple went to the free software model, there was nothing to gain by bundling. Let folks download only what they need, especially if storage space is at a premium (this switch happened at just around the time 128 GB SSDs started replacing 500 GB spinning HDDs in laptops). When software was distributed on DVD there were good reasons to have a single SKU at a higher price rather than multiple shrink-wraps for lower-priced products, but when you switch to download-only, those considerations go out the window.
From a functional standpoint, suites are rarely necessary. Sure, it's nice to have a consistent UI across commonly-used apps - if you're using Word on a constant basis but need a spreadsheet or presentation app rarely, there will be a comforting familiarity to Excel and PowerPoint compared to Pages or Keynote. But I'd wager the vast majority of users do not use the multi-app interoperability capabilities at all (eg. embedding an Excel spreadsheet into a Word doc or PowerPoint presentation).
I converted from Office to Apple's apps around 15 years ago. That's about the time I was able to quit being the only Windows user in an otherwise all-Mac shop (a suitable financial management app was finally available for Mac). It's also around the time we stopped subcontracting for a major publishing house (all those manuscripts needed to be produced in Word, of course). From then on, interoperability with the Microsoft world ended as a significant consideration.
I tried Pages - it did everything I needed, with a much cleaner UI. I converted one of my "monster" spreadsheets to Numbers - nothing was lost in translation and again, I ended up preferring the UI and workflow. So, no need to pay for another Office upgrade.
I'm not quite a Power User, so for my relatively mundane needs there's been nothing I've wanted them to do that Apple's apps haven't been able to deliver. Anything that I share with others these days is non-collaborative, so it all goes out as PDF - nobody gets to mess with my content or layout! Export as PDF works like a charm.
Altogether, Apple's free apps have saved my a nice chunk of change without a negative trade-off. It just adds to the Apple Value Proposition - initial cost of the hardware is higher, but the free OS, free productivity and creativity apps, ecosystem, etc. turns Apple into a long-term bargain.