I just saw the latest from Google in the form of Google Docs & Spreadsheets. It definitely looks interesting. And I like that you can upload (max of 500k) MS Word and MS Excel files.
I think the single biggest feature could be multiple people working on a document online at the same time. I know this was a huge feature with Groove 3.x (sorry to see it go). It's nice to see Google picking it up. That 'Collaborate' tab on the top right definitely has me intrigued.
And you can export as a Word document again, or other types. Cool.
But (can I write this on blogger, owned by Google?) some missing features come to mind (or maybe I just missed them... its been known to happen):
How are you supposed to work on documents offline?
Since its from Google, is everything searchable? Are everyone's drafts and revisions searchable? If so, it may not be the best idea.
And as as a software developer, I'd love to plug some of these holes-- and think of new stuff. When will the API be published?