When iWork 2 was released with Pages, I jumped on it. At EUR 79, even the word processor alone was worth it. I wrote and maintain the 40 page documentation of my latest product (plus its translation) with Pages. Once you get into the way Styles work, you quickly realize how valuable and powerful the styles drawer is. The TOC layout and setup is a breeze too (some things are subtle to set up, make sure you read the manual, which could afford more detail in some places, BTW). Pages hides a lot of power behind its simple interface. Many little details are well thought out, and on my dual 1Ghz G4 it beats Word by a large factor on speed and stability. I don't use multi-column layouts, but for writing documentation with lots of images and the relatively simple layouts I use, it's just perfect. I also found the tables to be quite easy and nice to work with.
And of course the PDF export function is the one I use all the time to generate the distribution of my documentation.
The only thing I'd like is that Pages also generates the PDF TOC when exporting to PDF, so that Preview and Adobe Reader can show the navigation bar.

This product is very promising. I don't doubt Apple will improve it along the way, and as it is now it perfectly fits my needs