In comment 18 to comment of the day “Google Docs is Chock Full of Fail” by Karim on Read/Write web, Bernard Lunn says:

if you drew a magic quadrant with “control over presentation/formatting” on one axis and “rapid online collaboration” on the other, neither MS Office or GOOG Apps would be in the magic quadrant

That’s precisely the quadrant we’re aiming for with plutext. We still have a way to go

Anonymous comment 4 to Scoble’s contribution to the debate also articulates our reason for being:

I’ve found Google Docs is great for collaborative editing. Once everyone’s done editing then it’s up to someone to take the Google Docs version and properly format the doc using a desktop word processor.

Based on this observation, Google needs to completely clone a desktop word processor or focus on perfecting collaboration