I agree the Surface product looks great - I just don't know who really needs the functionality of a highly portable laptop that wouldn't just get an Air instead. Possible exceptions would be people who can use the stylus or want the Microsoft applications/games.
And yet, it seems like nobody cares. Google gets away with completely crap productivity apps.
Maybe nobody is seriously trying to displace enterprise PCs with tablets yet. But this has to start biting them in the ass someday soon.
iWork is absolutely terrible from experience as well. It's not possible to effectively work with others, the UI is horrid and unproductive and it's completely unmaintained.
Microsoft Office 2011 for is pretty much close to perfect, and is certainly as capable as Microsoft Office 2010 that I run on Windows 7.
I run them side-by-side all day (PC Desktop with a big honking Monitor, Mac Laptop, 13" screen) - and I don't see any significant functional/usability issues with the Macintosh version.
Ironically, Microsoft Office is not a reason to use the Microsoft Surface instead of the MacBook Air. In fact, I'm willing to wager it runs better on the MBAir than it does on the surface. (Keyboard on MBAir laptop is probably better than one on Surface)
I'm thinking about what your average knowledge worker who wants to just have an email/excel/terminal/browser tool would want on a business trip - I think if we took an unbiased sample of people, 75%+ would rather go with the Air for that particular use case than they would surface pro.
There is the catch - excluding the gaming/stylus scenario - people still need a laptop - Few "knowledge workers" go on a serious business trip with just an iPad except as an experiment (that usually works out poorly), and they aren't going to carry both a laptop and a surface pro to meetings with them - therefore - just a laptop.
The iPad (and better yet, the Mini/Kindle Fire) - are great for just kicking on the couch, the Subway, reading in bed when you don't want to lug a laptop (and power cable) around with you.
It remains to be seen - but I don't think the Surface is going to get overwhelming traction. Yes, it's a better laptop than the iPad - but the iPad / Mini /Kindle Fire is a better media-consumption tablet than the Surface.