Yeah, that is something Google Docs sorely needs. We tried to use it for cooperative report writing, but since Google docs is roughly equal in capabilities to Microsoft Notepad*, everyone ended up writing in Word, pasting into Google docs (and then spending a lot of time trying to clean up the borked layout).
Simplicity for the sake of simplicity is not a good thing. Options are.
* I have since learned that Google Docs apparently have a lot of functions, they're just hidden from the user. You're supposed to use keyboard shortcuts, which are not listed or explained anywhere, can not be made visible, and are not equal to those you'd be used to from Word. Ribbon is bad, but hidden functions only available via secret handshakes is worse.