In the year that I've been using the word processor that is part of Google Docs, it has improved greatly. Bugs have been fixed, bullets work correctly, styles work better, and drawings and other features have been added.
Google states that more is coming, and that Docs will continually be enhanced, both for individual use and business use.
The functionality of the word processor is good enough to meet nearly 100% of your needs. Often it's all you need. Sure, big programs like Microsoft Word have many more features, but they are often features you don't use. I've observed also that many people use features they don't need because they are "cool" and they end up with an atrocious document or--worse yet--never finish the one they are working on.
To me, the idea behind a word processor is to put words into a document to convey your ideas or information. Everything else is fluff and detracts from that purpose. In a business setting, that costs money for zero benefit.