Pity OO is in such shape and I hope something will change. It's very important component of Linux desktop. It's also very important on Windows and MacOS X for people who don't want/can't buy M$ Office or as a transition step towards Linux desktop.
Now, there are alternatives. But face it, majority of people are used on something like Word, and they will NEVER use Latex or anything similar. So the facts that someone is using them, and that they are available, is totally irrelevant in this context. As for KOffice, Gnumeric, and similar, appart from lack of the features, how often have you heard someone is using them on M$ or Apple?