its only a word processor
Well, for me, a word processor is the single most important software that can be used on a computer (perhaps on par with a web browser). It is not "only" a word processor. It is, in many cases, a sophisticated piece of software. I need a word processor to be full-featured, compatible, reliable and easy to use. Apple Pages does not check all these boxes.
Neglected is a little strong as Apple provides regular updates, adding additional functionality several times a year. While cross references may be a key feature to you, in all my years writing corporate documents I have never needed this functionality.
However I agree in business, Microsoft Office is the standard that everyone uses to communicate and exchange documents. Numbers is the weakest link in the iWork suite, and is fine for simple spreadsheets and can create some good looking charts and documents. But if you need a financial modelling workhorse like I do, then Excel has no equal.
iWork’s best Application is Keynote and in my opinion is better than PowerPoint, to the extent even in a corporate environment unless I am collaborating on a presentation, I will tend to use it over Powerpoint.
At home I tend to use Pages, rather than Word, but for office documents I tend to use Word.
Well, in the last three years, Apple has been updated iWork apps more regularly, and providing new features. Prior to that, there were basically bug fixes and support for new macOS versions. It does not look like a priority, even though "neglected" was perhaps more suitable to what Apple did in the past.
Mac users tend to dislike Microsoft Office. This is understandable because Microsoft Office for Mac is heavy and cumbersome, and iWork is lighter and more elegant. Microsoft Office for Windows is the real deal, though, as it runs like a feather even though it is powerful and full-featured. For office documents, I tend to use Word for Windows, as it is much, much better than anything else, including Pages and Word for Mac.
As for cross-references, it is a feature that not everybody uses. As a lawyer, I use it regularly, it saves me time to update several references in a document. Also, when I write academic articles, cross-references are incredibly useful. Apple Pages is definitely not for me.
As for Keynote, it may even be better than PowerPoint. I find PowerPoint to be perhaps the worst of all Microsoft Office apps. Nothing special about it, and it is a shame that Microsoft has neglected Sway for some time now, as it could have been a good replacement. But it simply does not matter. Whenever I am doing a presentation, I am supposed to hand over a PPT file to open in the computer which is going to project it. It is always a Windows laptop, and it ready to open a PPT file. Unless I am able to attach my own laptop to the projector (which is very rare to happen), I will not be able to present anything with a Keynote presentation, no matter how good it can come out.
So, in my experience, it is always Microsoft Office. And, after working more than a decade in Brazilian corporate environment, I can say for sure that nearly 100% of businesses use Microsoft Office, and if someone tries to use something else, it might turn out being a disaster.