I've been using Google Docs for a few days because I need to collaborate with someone on a document.
I can say without reservation that it is terrible. The only redeeming qualities are the price and the collaboration features, since it's hard to beat free and the collaboration support is absolutely top-notch. But LaTeX and OpenOffice are also free so Google can only really get credit for the collaboration support.
Seriously. Bad typography, terrible image format support, no figure/table support, very obvious bugs in the section header support, no section numbering, awkward page layout decisions...
Frustrating. Because the collaboration support is so awesome.
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