I certainly agree with you on your assessment of Word as a text processor, but Microsoft Word 5.1a on Macintosh was once the gold standard of word processing.
Word had not yet acquired the bloat that would drag it to the bottom. The interface was comfortable, accessible, and unobtrusive. It got out of your way and let you write. "What You See Is What You Get" ceased to be just a Flip Wilson gag line, in large part, because of Word and the Mac. There's still a dwindling cadre of people who use Word 5.1a because it was just that good.
My main problem with Microsoft is that they're willing to look bad themselves if it makes someone else look worse. I'm not buying Microsoft Office 2008 or its successors. It's my chance to help stave off The Redmond Monster's attempt to create yet another craptastic standard.