Not really MS Office is a more robust suite of applications.
As for the move, I think its a good move and I think was curious that they were charging for this when they were giving it away for new owners.
I honestly prefer to use iWork instead of Office, by choice.
Obviously, in some areas Office has tools that iWork doesn't (Excel is clearly more powerful than Numbers). However, for a lot of users and what they need from those, Office is completely unnecessary.
Most peoples need a good app to edit text files, make presentations and do basic budget/spreadsheet stuff.
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I tried using Pages and Numbers, but they were not very intuitive so I went back to Microsoft Office. Since Apple has a reputation of not continually improving its apps, I suspect they're still inferior products.
It's not that they are less intuitive, it's that they don't work in the same way that you are used to in MS Office.
And that's precisely the point. Why would you use another app if it worked exactly the same way.
I'm right at home when I use Pages, Numbers or Keynote, and I feel lost when I'm in Office. (I always hated the "throw every button in your face" approach to app design)
Same thing applies to Macs vs Windows in general. They are different, and that's why we love them.