I guess this is the first product from Google making use of “&” for combining 2 products and in a way combining word and spreadsheet does make sense. (However as of now there is no easy of dropping spreadsheets into the word document)
As in every other product from Google, the highlight of Google D&S is the clean user interface. The document can be saved into multiple formats(HTML,RTF,PDF) and the collaboration feature makes it easier for multiple users to work on the document. There is an experimental Find & Replace feature as well !
As in Writely, you can even publish the document to your blog. I wrote almost half of this blog using Google D&S until I faced a problem, because of which I had to shift back to Live Writer!
I was not able to insert a image from a Web URL ! The insert option allows only a file URI.
One option I had was to edit the HTML ! However the cursor position in the doc is not synched to the appropriate position in the HTML code and it was a pain searching for the correct location and inserting the image tag ! Not sure why this feature is missing !
(Google , if you are reading this post, do add this feature ! I will guarantee one dedicated user of D&S 🙂 )
Another issue was w.r.t searching ! There is no way of searching only Docs or Spreadsheets and the search result includes documents from both word and spreadsheet !
Find the official post about Google D&S here.