The problem with that is the issue of storage and functionality (aka, you have to host it). No one is really going to pay to host it or roll their own when the

The problem with that is the issue of storage and functionality (aka, you have to host it). No one is really going to pay to host it or roll their own when there's a 'free' version already available. And the fact that while the word processor in Google Docs is moderately functional, everything else in the suite is nowhere near a replacement for the actual applications.