I have used Google Docs in the past just as the Plain English video described as a place for several students to work on a term paper together. It's also helpful just to have it online for someone to proofread for you. I've very big on proofreading. I never trust myself when it comes to commas. Ha!
Google Docs does have some cool features beyond simply word processing. You can save as RTF, PDF, see a revision history and much more. It really is better than attaching documents to emails. That being said, I've spent the last 40 minutes playing around with Google Docs and it's not very easy to figure out how to publish your document as a blog post. Turns out the spreadsheet won't post. So I tried creating a plain Word-like document with a table and it posted but it looked funky with lots of extra spaces. I not only tried to fix it in Google Docs but also tried to fix the HTML on Blogger. I consider myself pretty knowledge but just couldn't figure it out. So here I am with a basic document as a post to my blog. I was trying to be all fancy but to no avail!