MS Office is a big bloated program. 99% of it’s users use about 1% of it’s features. I hope Google doesn’t make the mistake of turning Google Docs into a slow lumbering clone of Office.
If you want Office go out and waste a couple of hundred dollars. With a few minor tweaks Google docs will meet the needs of most people and businesses.

That’s very true that a large number of people use a very small set of Office features, but I believe that Google still needs to try and appeal to the power users. It’s those people who are going to recommend the service to friends and family, as well as bring it into their corporations.

Plus you have to look at the reason why people haven’t used many of Office’s features in the past. It was normally because they didn’t know about them, and I’ve seen first hand people exploring new features in Office 2007 because of the redesigned interface. So Google does need to focus on the features that are widely needed first, but that doesn’t mean other features wouldn’t be useful if they are presented in an easy-to-use manor.