Microsoft Word on the iPad is currently a solid app. It has the core functionality nailed down. Editing documents is as pleasant as it’s been on any version of Word I’ve used in my lifetime. If you use Word for basic to medium-level work, then there is a good chance that it will work well for you. However, if you are an advanced Word user or rely on some of the customization options present in the desktop apps, then this will likely let you down.
I don't use Word a ton, but when I do I'm usually impressed with how well it works. Those of us who write in text editors will of course not get as much use out of it, but if you work in rich documents or as a team, then Word is pretty darn compelling.
Thanks to Josh Gitner from The Sweet Setup for letting me use his awesome mockup at the top of this post!