This is an interesting article on the history of word processing and some of the problems with the software so many of us use these days. I use Microsoft Word at work and think its a poor program to be honest, randomly changing your formatting between saves is not a good feature!
I've used many word processors over the years dating back to the days of the Amstrad PC (we may have used a word processor on the BBC Micro but i can't remember much about it), i've yet to find a perfect one yet though i did like Word Perfect 5.1 and Protext for DOS.
Of course i couldn't do without them. I wrote my masters dissertation in Apple Pages which is a reasonable piece of software but like all word processors these days (especially Word) there is too much stuff and too many options getting in the way of the actual writing. Maybe we need to return to something simpler like a typewriter such as like my lovely old Brother typewriter. Or maybe not...