Google had a spreadsheet Ajax application before.
And then they purchased Writely.com

Now they merged them into docs.google.com
It can save formats in a couple different file formats, including OpenDocument Format!

http://docs.google.com

Not sure about having my stuff stored like that, but to each their own. An interesting aspect would be there'd be no backup device or disc to lug around from place to place when if using different PC's. The most appealing feature I noticed from the tour was the ability to turn the document into a webpage without any HTML knowledge which could help allot of people making their first website albeit I don't know how complex it could or couldn't be.

Then again I suppose a forum software like IPB could do the same - but for free I don't know.

Yes, I agree with you. I am very skeptical to store documents remotely too.

also works with Opera . well, except you have to identify it at Mozilla(due to Google complaining about Opera). but nevertheless, it works.