Keynote beats Powerpoint by a mile.
Excel is better than Numbers.
Pages is better than Word for a publishing, layout view, to make professionally designed documents (yes, even Word 2011's publishing option). For essays and normal write-ups, Word is better.
Compatibility between the two is awful. When importing Office files, the layout and formatting may be messed up in iWork. And you can't work natively with them, you have to import and export.
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