[mseebach]

You left out the bit where Google invested massively in one of the few credible alternatives to Office, and forced Microsoft to reengineer their products to enable online collaboration. So, it's a step or two backwards on support and a leap forward on functionality and access (You can get fully functional Google Docs for free, just not on your own domain, Office 365 seems to be £80/year).

[scholia]

You can also get free Microsoft Office apps in SkyDive, which are actually better than Google Docs (and don't screw up your documents). These apps don't need an Office 365 sub.

Despite the name, Office 365 isn't really about Office -- you already have it -- it's selling web-based SharePoint and other services.