Pages for iCloud - what a fantastic job
Pages for iCloud is pure awesomeness. It's completely free to use as long as you have an Apple ID. It's super easy to use. I love how it handles images and how the text dynamically wraps around images. I love the automatic positioning by the rulers. Overall, the (web) application is a joy to use. And yes, because it's beta, there are quite a few bugs.
For what I expect from a word processing software, I prefer Pages for iCloud more than Office Word, which costs hundreds of dollars. (Just to rant a bit here, I've always thought that Office has always been one of the worst but overhyped (oversold?) piece of software junk ever brought to earth. ) Of course, for more advanced features, Office Word hands down, and of course, its biggest single advantage is compatibility.
But Pages for iCloud stays in the cloud and can be accessed and edited anywhere there is internet... So I think that largely solves the compatibility issue. Apple has really done a phenomenal job here. I love the fact that when Apple decides to do sth, it does it really well. (Maps data has been improving a lot, and I've always thought its underlying architecture is far better than Google Maps)