Word 2.0 was good enough ...
... except for floating images.
I helped my partner write a book in Word 2.0 on a 386 with 16MB RAM - including many scanned full page images of maps and microscopy. Back then you had to insert a frame before you could place an image in it, and it was wise to link to images rather than embed them in the document so it wouldn't fall over. I've not seen much change in a practical sense since then in Word; other than improvements to image positioning, etc - although I don't use anything more advanced that table of contents, styles, mail merge.
Access 2007 and above however are soooo much nicer than Access 2003 and below. Still, I guess the only way to keep selling Office is to keep selling computers without Office on them. Office 2003 was the last one that didn't care how many machines it was installed on.