Whatever you use for a novel, it really won't be WYSIWYG or even close to it!
Leaving aside the fact a novel now will be ending up in multiple different formats anyway (hardback, paperback, maybe a large print edition, each with different type and paper sizes and different margins - then we get into the different e-book options, where it's the user who selects the typeface and size), the author just doesn't control the formatting anyway.
I've occasionally seen journalists at work, filing newspaper stories electronically. Definitely not Word - and not formatted, either, some sort of plain text editor.
On a pro level, trying to display (and edit) formatting while you work on text is just a nuisance: a waste of computer resources and a distraction to the user. It's why the high-end pro stuff like InDesign have features like "story editor" where you can edit just the text, without formatting in the way; it's why I like that and LaTeX.
Word? Save it for the school essays thanks, leave real work for real software.