Overall, Zoho writer offers much of the functionality of Word - at least the most common and useful tools seem to be available. Images can even be added via upload or link.
It really is much like using word, with the only issue being speed. While text is entering as fast as I'm typing, a few things are taking time to load or work. This is presumably related to internet speed.
As a way of collaborating on documents, Zoho seems like the perfect tool. No emailing back and forth, and groups of people can presumably work on the same file. I say presumably because the other falling down point of Zoho is it is so intuitive the devs apparently thought there'd be no need for help files. The forums are good, but hard ot read through for one piece of info.