Why can a word processor have so much difficulty:
- Getting outline numbering working.
- Handle styles appropriately so you don't end up with sections as 'Default' and 'Body Text' without being able to tell.
- Make images anchor properly.
- Have a simple diagram drawing tool that is usable.
It really doesn't have to be super fancy, RISCOS managed to work it out many many years ago. Just blend that with a modern file format (Open Document) and you're sorted.
Hopefully AbiWord will replace OOo...