I use and like iWork. But let's not get carried away. It's NOT Word in all its glory and bloatedness, for better and worse. Even OpenOffice is far more full featured, if you want and need those features. Look at iWork for what it is, a streamlined and useful word processor with nice interface features, a relatively inexpensive alternative to something like Office, especially if you're able to get academic pricing. But in exchange for the low price, you'll be without all sorts of things that Office gives you.
Me, I can live without those things and I haven't had Office on any machine of mine in at least 6 years and hope to keep it that way.
Among the shortcomings of Pages, the iWork word processor, is its .doc integration. You can open a .doc file, but you can't save to it. You have to take the extra steps of exporting your document to the .doc format every time you need to save to that format. You can't save your working document as a .doc. You can only save to the native format. This is an absurdity and a waste of time.
Another example of a basic missing feature is in Numbers, the spreadsheet. You can't split the spreadsheet window and freeze a portion of it so that, for example, you can scroll the data while leaving the header row and/or column at the top or side of the window, thus enabling you to know what the rows and columns are for in a large spreadsheet. There are workarounds that you can use to sort of fake it, but they're inadequate. This is so basic a feature that it's unimaginable that it would be missing. But it is.
Again, I live with it. I like iWork. But don't get intoxicated by the Apple imprimatur and automatically assume that it's the greatest implementation of an office suite that's ever been developed. In other words, it's not an Audi A6 or a BMW 5 series, it's a Corolla. Expect the Corolla and you'll be very happy.
Another alternative would be to use something like Google docs or another online word processor. Again, you don't get the full feature set that Office gives, but maybe it's all you really need. And it's free.