The best replacement for ms word is pages.

The best alternatives to ms word are rated as following:
★★★★★  pages
★★★★  openoffice
★★★★  wordperfect
★★★★  wordpad
★★★  openoffice writer
★★★  ms excel
★★  ms works
★★  ms publisher
★  powerpoint
★  framemaker
★  pdf
★  apple pages
  desktop publishing
  ms powerpoint

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Speaking about ms word, one probably shouldn't forget about mail merge.

Other search terms related to ms word and their ratings are:
★★★★★ mail merge
★★★★ labels
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ms word
pages
openoffice