Personally, I think "Document" is a good name, even a very good name. I'm a business user and cringe over "cutsey" names. Document states very clearly what the application does and it's very no nonsense about it. It also has a serious, hefty sound to it, like it has some power. I'm guessing that this name will stick, and that "iWorks" is for internal use only.
A couple of other thoughts: While I agree with the idea that something like iLife should be Mac-only, there's much greater need (and even more perceived need) for standardization among office suites. If Apple can truly surpass MS Office (and despite some of the issues we all have with Office, that won't be easy to do), it should consider doing it cross-platform. At the very least, if the suite is good enough, the *possibility* that it could go cross-platform might give Microsoft some incentive to keep Apple happy. Along the same lines, Apple should consider using the .doc format as standard and making a major effort to see that document formatting is preserved accurately if opened in Word. If there is even a chance that a document I send for business purposes won't look correct on the recipient's machine, then I can't consider the program. And I think many other users will face this dilemma. Finally, it and other Apple programs should be relentlessly Dock-aware. Microsoft's Mac division has done this very well but Apple, oddly, has not.
I'm looking forward to iWorks (or whatever it's called), but I'm going to have to be convinced to use it.
elo