Just to give you a little idea of exactly _how_ different expectations can be...
I've recently used my old Blueberry iBook (300 MHz G3, 192 MB of RAM) again. The person I've sold it to wanted me to reinstall everything, so for fun, I've installed the Mac OS X Public Beta again (a Cheetah build, 2Xxxsomething) and wrote a short story in TextEdit. And guess what: The little machine was a perfect OS X machine for me for that moment.
Now, on my newer iBook, I do some serious work. I'm using InDesign 2 and Photoshop 7, for example. I have a 1280*1024 17" TFT hooked up to it (using a firmware modification). Sure: Some things are certainly slower than they would be on a Dual 1.42 GHz PowerMac. I don't really want to know, even. And even less how fast it'd be on a G5. I can work very well on this machine and am actually making money with my graphics design, writing etc.
However, back on the real topic from the beginning: Yes, I was also able to do graphics design and word processing at similar speeds back in whatwasthatyear on my PowerBook 520c (25/50 MHz 68LC040 Motorola processor, 24 MB RAM, System 7.5.5) and the accompagnying (spelling?!) PowerMac 8200 (120 MHz PowerPC 601 by IBM with 128 MB RAM, Mac OS 7.6.x). However: My products certainly lacked some things that just weren't possible at those times. The wonderful type features of InDesign, for example, and working in Photoshop took longer for similarly sized files.