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Does Avatar represent the future of movies? Maybe not
I think its an essential strategic move... It's important to have more people making your currency, which will in time sell more copies of sharepoint server and Biztalk server etc $20k a pop that none of the web companies are a serious threat to... But those servers can't feed if the currency (docs) are strtuing to fracture around the web over different online apps
So the goal for the next 4-5 years may not be to sell the office suite (there are plenty of site-licenses to he sold to companies that prefer security and reliability over online) but to ensure that docx files remain in use by the masses, and to accelerate server sales growth