Very true. I can't be bothered now to remember how many times I've literally struggled with Word with various more or less "advanced" features like cross-referencing inside the documents, *accurate* list of figures and tables, custom "floats" (does Word even have this?), bibliography management (ahhh, the pain!), index, glossary, automatic code highlighting etc. Heck, I'm even doing my presentations in LaTeX... In LaTeX, the pain is setting up the document initially --- after that, the content tend to be very light on markup (if you're doing it right, that is). It just, well, works.
Also, the cost is effectively zero, as it's open-source. Packages for everything that has been ever put into print exist. You don't need fancy hardware to run it --- you can probably run it on Win 98-era machine, and it will still work (granted, the compiling would be a bit on the slow side probably, but still).
LaTeX also gets additional bonus points for the essentially unchanged, and pretty readable as it is, file format. I can still compile sources that I've created several years ago, and the result will be *exactly* the same, without a single change. The same trick also works regardless of the operating system (AFAIK, there are (La)TeX distributions for Windows, *nix, and Mac OS X, and they can deliver the same predictable results across all platforms).
When is Word going to beat that?