Why re-invent the wheel?
Mac users once had an excellent "all round" and free (to computer purchasers) program in Claris Works - quick, efficient and flexible, in the context of the day. When Claris Works was taken over by Apple my immediate thought was "well, that's the end of any development of this program". Previous experience with the many dead-ends of Apple software development made me say this. And I was right. Apart from the minimal updating required to allow it to run on Mac OS X, absolutely no work was done on this at all. Apple Works was stuck in a prehistoric computer time-capsule, yet I still used it every day. Steve Jobs is certainly a visionary, but the problem is he quickly looses interest in older technology, even though this is important for all the usual things that most of us (if not in business) use our computer for.
I bought iLife not for the iWord, but for the Keynote program, as my wife is doing postgraduate studies and needed a presentation program. I think this works very well. But I have hardly used iWord at all. To me it seems an uncomfortable amalgam between a word processor and a page layout program, and it does neither particularly well. For instance, for my wife, it cannot place references at the end of the document, which Apple Works can. iWord is a work in progress and Apple charging money for this is taking the buyer for a ride. You couldn't even remove a page until they updated it. No integration with spreadsheet, drawing, etc. also makes it far less flexible than Apple Works. In addition Apple have missed a golden opportunity to create a combined word processor, page layout and html page creator for the internet. Perhaps they feel that this would compete with their .mac facility, but many people, once they have started on the fascinating world of the internet, would truly value a flexible and intuitive internet page builder, rather than being constrained by pre-built templates.
I am sure that Apple Works would have needed rewriting, but they should have spent all those years where it was completely neglected to do this, and we would then have a program even more useful than the old Apple Works, instead of a flashy new, but only partly developed, single word processor. In the meantime I will continue to use Apple Works as I have always done. For those people who do need all the bells and whistles, use Microsoft Office.