I use Word for advanced documents (table of contents, footnotes, etc.) but TextEdit is really fine for most things people would need--all the major formatting, fast and simple interface, etc. Just be sure to turn on "Wrap to Page" to get a page-layout view of your document.
Nisus Writer Express 2 (not quite ready but will be there soon) takes on Word's feature set and does a pretty good job of it. Check it out at Nisus.com