Pages will not replace Word. As others have said, Pages is fine if you are home user making newsletters, letters and doing some light editing on documents. But if you are writing papers for university (that's me) or doing office work, get ready to be frustrated with the iWorks suite.

I meant, Pages doesn't have:
1) footnotes and endnotes can't appear on the same document
2) right clicking on a word and use the thesaurus to replace a word
3) nested tables (a feature btw, Word had since 1995)
4) save documents as docx (come on!)
5) a decent chart maker tool
5) and oh, if you are working with another language other than English, expect your document in Pages look like it got hit by a bus!