I remember one interview where Dr. Eric Schmidt CEO of Google mentioning that Google apps is never a competition to Microsoft Office suite. If you keep an eye on the features that is being added on to the spreadsheets in apps is very much satisfactory for a normal users who wants to maintain a simple basic sheet.
One deadly weapon in apps is the ability for collaborative work. Everything is just fun as an application. What is very wrong with apps is not still adopted much by people over MS office. In-ability of apps to be used while your offline from internet.
With this new approach of Google gears it will be soon implemented on Google apps. We can very soon can expect offline gmail, offline spreadsheet, offline docs etc etc. Fingers crossed 😉