You know it is hard to order people to do something when they aren't paid. Even project like OpenOffice.org that had commercial venture had hardship with funding. Oracle cancelled it, Novell cancelled it, IBM do whatever they want, etc.
All in all, GNOME Office didn't happen. Some bits did, though. AbiWord was always broader than GNOME. And Gnumeric is great IMHO.
And people see the future in the cloud.