I’ve been using iWork ‘08 for one week now, and I can definitely say I’m really satisfied.
Import of MS Office documents is much better than before and Numbers, the new excel-like application, really makes the difference. Now I can totally avoid using MS Office 2004 for Mac.
I think that iWork covers 99% of the needs of a normal user and most of the times compatibility is not really an issue, since in the past I have had more problems with MS Office for Mac than with iWork. In addition, iWork ‘08 can open the new Open XML Office 2007 file format.
Apple, great… Jobs 
If you want a in depth review, please take a look at Walt Mossberg’s column.
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