At this stage, not a competitor for apps like Textilus or UX Write.
I use MS Word on PC and Mac and have an Office 365 subscription (which I think is value for money). What I don't like about Microsoft's approach is that they try to force us to use their cloud service ie OneDrive. They came late to the cloud party and forget that we don't only use MS products! I am a heavy Dropbox user - all my documents live there and the majority of productivity apps on my iPad integrate well with Dropbox (and other cloud services). Word for iPad ONLY connects with OneDrive!! Microsoft is continuing its heavy-handed approach of trying to corral users to work how they dictate we should work.
As well, the app is actually very simple - eg. No extended keyboard, limited paragraph formatting, no styles ... Bottom line - if you want to do desktop publish-y stuff stick with Pages, if you are a power writer try Textilus or UX Write, if you are a rusted-on Microsoft fan and use OneDrive then you will probably like Word for iPad.