Agreed iWork is great if all your work is in iWork. If like me have to work on word aswelll, pages and the iWork software is not so great. You will get all sorts of formatting issues when transferring documents. In my experience it's quicker to just use word than try and get it to all look right in word, move it to pages then move back to word.
Office 2011 for mac however is excellent, I'm hoping Microsoft gobble up their pride and make an office suite for iPad. Then this would be a viable product for actually doing work on. Until then it's just for angry birds and email.
I love it none the less though.