AppleWorks was good, especially for the price and the speed.
The trouble is that it used a lot of code that couldn't be easily converted so it got minimal Mac OS X compatibility and that was the end.
The iWork applications are certainly more modern and obviously, Keynote is a whole lot more powerful than AppleWorks' presentation module that replaced the communications module. Pages merges the capabilities of the word processing and drawing modules but still needs to mature.
It's too bad that AppleWorks couldn't have continued but it's also a good thing because Apple were forced to do things properly.