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Windows just isn't that expensive. If you're paying MS for Office 365 anyway then there's no real point in replacing the set of drivers used by the browser.

I am puzzled that they not already have moved to the web. Also speaking off the cuff: what are the main reasons for using word documents in government? If it is mostly communication with other parts of the government or the public, shouldn't this be email which requires very little functionality compared to word.

I can see niche cases, like laws where you want change tracking or very long reports but that does not seem to apply to most government employees. Somehow I feel I missing something big, maybe there is a lot of automation built around word documents?

yes, but then what was the point of moving if all functionality was on the web anyway?