Despite its faults, Docs does incorporate some intriguing, even revolutionary ideas. If the goal was simply to mimic the current office paradigm on the Web, Docs would be a miserable failure, but Google is looking at the bigger picture. If outside-the-box thinking excites you, you may want to give it a try.
For example, in keeping with Google's idea of working in "the cloud," Docs discards the usual files-and-folders desktop metaphor. Instead, it presents your documents in a chronological view resembling an e-mail inbox, based on what you worked on most recently. Similarly, you don't need to save multiple copies of documents as you make revisions because Docs maintains an internal version history for each document that allows you to view or revert to an earlier draft at any time.
Rather than simply re-creating desktop apps in the browser, Docs is Web-centric. You can import documents via e-mail or from the Web, or embed them in blogs or Web sites to share with the public. There's a UI for embedding YouTube videos in your presentations. There's basic version control to allow multiple authors to work on the same document. Forget paper; with Google Docs, it's all about sharing, collaboration, and online publishing.
A demo file created in Word 2007 (above) reveals just how many features Google Docs gets wrong. Charts embedded in Excel 2007 (below) appear as big, white boxes labeled "No Data." (Note: Click the images to enlarge them.)