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I absolutely agree the on-screen keyboard sucks and carrying around a Bluetooth keyboard can be a pain. however I use my iPad all the time for document creation as well as my iPhone and I never use a keyboard for either device. A real computer keyboard blows away the iPads on-screen keyboard period, however voice to text which works great on the iPad blows away any keyboard in my opinion. voice to text has done more to improve my productivity then any invention since the computer itself. try using voice to text with your iPad and wordprocessor and tell me that's not a superior experience to a keyboard on the desktop or any other computer.
iPads are all over the place at work, 2 or 3 in every meeting. Need to refer to a ticket or bug report? Need to look up an email? Want to take notes on this meeting? Need quick access to a graph or a database? Go back and read the stores of the fabled "Slate" at Xerox PARC, and then realize the iPad is really the Slate come to life. Yes, the iPad makes a lot of sense in the office setting, especially as more and more productivity, tracking, and sharing apps are moving to web interfaces.
As for Word, I'm not so sure. That's a lot of code for a tablet device. Maybe it's just time to break your dependence on Word in office life. I don't really use Word anymore, since my employer has gotten away from writing requirements and design documents in Word, and now does them as stories in our web tracking tool. Which works great from an iPad.
Tapping on a glass screen instead of a keyboard is a crummy experience. I can’t see ever wanting to use an iPad for business productivity, but if I were traveling and carried an iPad for handling email, surfing, and editing documents, sure, I can see Word being useful.