If you search the discussion boards here with the keyword "office", you'll likely run across the many threads where this issue has been hashed out.
My own take is that if you do not need to share editable documents with other people (i.e., if you are only going to produce hardcopies or PDFs of papers), and you don't need advanced editing capabilities (such as track changes), then Pages is a
much easier to use word processing application than Word, and is a vastly better page layout tool as well.
Do keep in mind that there are many other inexpensive word processors for the Mac, each with their own strengths, including
Nisus Writer,
Mariner Write,
Mellel, and others. Also, the free open-source Office-compatible suites
NeoOffice and
OpenOffice provide almost identical functionality to Word, and are available without charge if you ever find the need to exchange Word documents with someone.