Om Malik writes that Google is rumored to be in talks with Writely, a web browser based Word processor, for a possible acqusition.
I think Writely fits just right in the Google Plan. Google Calendar and Google G: Drive are nearing release, an online word processor would be a nice addition to the Google Productivity office suite. Write documents with Writely and store them in G:drive.
Writely is also the best AJAX based word processor around. You can save documents as PDF in Writely, a feature that Microsoft is making available for the first time in Microsoft Office 2007. So it suits Google even more.