This is probably a little late, but Google has begun to offer Word Processing on the web. They have offered spreadsheets for a while, but just recently, they combined the spreadsheets with their documents.

Main Advantages:
1. Access anywhere
This is great if you are like me and use many different computers.
2. Collaborate
I haven’t had much chance to try this, but multiple people can edit the same document at the same time.

Disadvantages
It does not have most of the features that most Word Processing programs have (mail merge, image editing, …). But, you can export to and import from other formats. So, you can use each for its advantages.

Check it out:
http://docs.google.com/


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