At the Education price point ($49), it's a great deal. If you consider that Keynote was $99 when it came out, now you can get two apps for $20 less ($50 less in the Education pricing), it's an even better deal.
This is what bugs me though. Apple bills this as a suite of apps. It's not a suite - it's a duo. The other thing is the tag line Steve used at the keynote..."Building a successor to Appleworks". Well, Appleworks has word processing, calculations, presentations, drawing and database components. iWork has word processing and presentations. More than half the suite is missing.
What Apple isn't saying is that iWork '06 will obviously add another cog to that wheel, probably the Excel like component. Of course, the price will increase at that point.
What bugs me is that Apple doesn't seem to see the immediate need to replace Appleworks outright, right now. Pages was designed by the Keynote team. So the team that was responsible for Keynote handled the entire iWork product. It seems if Apple wanted to get this out the door, they would assign more resources to it. Instead, it looks like they will piece this "suite" together over time with the team they currently have in place.
I love Keynote, so I anted up for the upgrade. Pages looks pretty amazing. Since school and my job are both standardized on Word (blech), I don't know how much I will get to use it. But if it handles Word docs as seemlessly as Keynote handles PowerPoint files, it may replace Word for me.