I know there are problems with it, but at least OOo and Google Docs etc. can usually interpret my documents OK. That's not exactly a glowing review but it's enough for me and most people to get work done.
I wish - I've had attachments that I've tried to open in Google Docs that appear mangled on my iPhone (which is not fun when you don't have a PC anywhere nearby).
It's unfortunate that the case where you wouldn't really need to attach a Word document and should just paste in the contents into email (just some plain text) is the case where Google Docs works just fine, and the case where you really need a Word document (complex table layout & floating pictures) is the case where Google Docs just doesn't work that well.