I guess you have to accept that iWork _will_ replace AppleWorks. Clearly, AW has not seen a feature update in half a decade, and iWork is out to take its place. Pages will now, that it's been put through users' testing, get much-needed feature- and usability-updates, Keynote will probably get another theme or two (yes, that's sarcasm...) and we'll probably see an addition to the iWork suite. My guess is database, although the spreadsheet application would probably be needed by more people. (But database can be _themed_ more nicely, so that spreadsheets will just be the final missing puzzle piece next year, when iWork 07 finally becomes a real office suite?)
I have a love & hate relationship with wordprocessors myself. I wrote many of my early short stories in Microsoft Word 5.1a on my PowerBook 150 back then and switched to ClarisWorks when Microsoft went crazy with Word 6 (the worst version of Word for the Mac *ever*, it was a straight port from the Windows version, ultra-slow and much too bulky). Ever since, I've seen wordprocessors add features and trying to be "helpful", a heretic flaw in my opinion, so when I first had Rhapsody in my hands, I switched to TextEdit in order to write my stories. As a statement, really. Now, I often use TextEdit to start writing and then switch to Pages, because I like how it feels to write there. If you turn off hyphenation (which does very strange things if your system is in German), it works just fine.