I'm not sure if you're saying you think that Google doesn't use Docs, Sheets, etc inside of Google but that is the entire opposite of what is happening. Anything that you'd normally do in Office is done on Google for Work at Google. There really isn't any other option available.
If you are a heavy Excel user, Sheets just doesn't compare in many ways. Even for basic things such as pivot tables. The interface is just painful, and you flat out can't do certain things.
I really with that team would bring it up to feature parity similar to how Marissa Mayer grabbed everything she could from AdWords in terms of features and UI design.
And Sheets isn't aimed at Excel power users. It's just that Excel is seen as a niche tool in the same way Photoshop or a programming IDE would be. I think that's fairly reasonable.
I consider things like pivot tables to be more mainstream and not relegated to just power users.
So the statement I responded to:
>"Anything that you'd normally do in Office is done on Google for Work at Google."
...is just not accurate. Not to mention other super basic things like a lot of the formatting options, etc. Those most certainly are basic user needs, and you can't do half the formatting things you can do in Excel.
You are forced to use it, but seemingly nobody is allowed to improve it.
I too use it daily as my employer is a google apps customer. Which is why I am so frustrated and really need to vent about how featureless it is, and especially about how its improvement trajectory is so flat.
It's probably just targeting a different feature set than you need. Personally Sheets does what I need a majority of the time. Many of the google office-like products support Apps Script[0] as well so you can build on it a bit (hence all the 3rd party addons).
You also mentioned animations and transitions for slides. Personally I like the minimalistic use of slides (it should be background to what you're actually talking about, not taking center-stage). But that's the developer in me, and I'm sure lots of business-like people out there prefer the pretty and animations.
Maybe Google doesn't really need to create sales presentations. It's really hard to get good looking stuff out of Docs or Slides.
Importing vectors like .eps is not possible.
Creating a new document to a directory using your business template is impossible.
Copies of documents are created in root directory. Moving requires navigating in a tiny window without search. (Makes template usage even worse.)
There are no small caps.
You can't load custom fonts.
No log axis in Sheets. (There is histogram though so it's better than Excel!)
No backups, no change management, easy to destroy whole google drive by one user dragging wrong. NOBODY SHOULD EVER DRAG ANYTHING.
Disclosure: I work at Google