I actually created a GoogleDocs account about four months ago, because a number of library customers were using it & I wanted to know more.
I like the idea of being able to access my documents from any computer with Internet access. If I trusted the Internet more (and thought it wouldn't go kaput at any moment) I'd probably use this for my graduate school papers, especially my thesis. I get sick of carrying around my thumb drive and working on it from computer to computer, or emailing it to myself to work on another computer.
BUT. Does it do footnotes? Let's see.1
I guess my basic point with GoogleDocs is: if I'm already comfortable with Word, and it works for me, and I don't REALLY need to access my documents anywhere else, why do GoogleDocs?