I work on European research projects, often with over 20 partners. When writing deliverables and integrating input from so many people, the track changes feature is an FSM-send. I say this as an otherwise hardcore Emacs and LaTeX guy.
LaTeX is much better if everyone uses them. However, most people use Word, and at that point, you may as well too. Anything I write I write in LaTeX and convert to odf, then save as doc, but most people only know word and will not be able to work with anything else. For instance, I once sent my supervisor a beautifully formatted latex paper. She replied and said that she couldn't give any feedback without a word copy of the document. Sigh.