My problem with all of these
... with Word, Works, etc. is that they encourage mixing up content and formatting. I don't know how many times someone has asked me to "help them" with their Word document, and the help that they turned out to need was help fixing the formatting hell that they had gotten themselves into. It's too easy to embed hidden formatting changes, style changes, spaces, tabs, etc.
If Apple wants to do something really bold, they'll do something like Framemaker, or the old NeXT product Pages and create a writing program that divorces content from layout.
To give an example. If I want a word to be emphasized, why would I ever want to put it in italics? What I really want is to tell the program that the word should be emphasized, and let some global parameters decide what to do with emphasized text.
I know that this can be done with styles, but there's no enforcement of it, and it's just too easy to hit the command-i and fire up italics.
The world will be a much much much better place when someone finally gets this right.
Another huge opportunity is that output produced with Word, at least by default, just looks lousy. It may be that its kerning and hyphenation algorithms aren't as sophisticated as those in products like Frame, but if anyone is a graphic designer, they know what I mean. If there's one thing that Apple knows, it's how to make things look great.