Pages is exactly what Apple wanted it to be, a Word processing application with style. Unfortunately style is more dominant than productivity, which is a shame. It can be very slow and choppy at times and clearly needs a lot of work on Apple's front. The templates are cool and you can make some great looking brochure and leaflets but for raw word processing it is poor imo.
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What I see Pages as trying to do (again) is to define a new category.