I also fail to see a problem with iWork. Exports for the win. You can't expect a non-MS product to save Word files by default. I personally export to RTF, though, unless the document has some feature that RTF doesn't support... I don't want to further propagate MS Office as something that is "required".
As for the lack of connectivity, I'd say this is made for people who don't need it. Granted, it's been ages since I owned a laptop, but when I did (back in 2005, even) I rarely if ever used the physical media drive and ports on the thing.
Also, I don't know if it was mentioned anywhere, but if you have a bluetooth keyboard it'll work fine with the iPad. No need for an additional purchase. And yeah, carrying a keyboard does kinda kill the point of a tablet, but it's a bit more versatile - that is, if you don't need a keyboard you don't have to have it out. Same could be said for those funky laptop/tablet combos, but to be honest, I can't bring myself to trust having the screen mounted on a single flimsy hinge.