“Updated applications augment, but can’t replace, their desktop counterparts.”
As a firm believer in web apps over native apps, I truly think Office Web Apps from Microsoft are probably the closest entity to what will be the standard form of mobile productivity in the future. Currently, the technology is still heavily reliant on its desktop counterpart to reach its peak performance, but Office Web Apps are for the most part on par with Google’s offering online. Rather than trying to cram more functionality into the web apps, Microsoft should focus on getting the existing features to work as effortlessly and smoothly as possible. The limitations of mobile have fortuitously forced the Office team to limit the app to what is absolutely essential without piling on all the extra chrome that only edge cases require. Perhaps they can build out an enterprise or Pro version to make sure they don’t lose a foothold on that market when absolutely everything migrates online (more than just Office 365 or Click-2-Run). The guiding principle should be to keep it simple!