I haven't made any secret of love for Office 2010. At the same time, Google Docs remains my tool of choice for all of my basic documentation, note-taking, collaboration, sharing, and writing. As I've said before, it's all about what you need, where, and when. That being said, are there some clear advantages or disadvantages to either suite? Check out the gallery below for some direct comparisons.
The basic idea, though? If you want access to all of your documents natively and automatically from any web-connected browser, then Docs is king. If you need publication-quality documents (plus really sophisticated spreadsheets, databases, and other software), Office has you covered.
In many cases, it's far more important to me for my notes and writing to be available wherever I might be, regardless of the computer at which I'm sitting. Microsoft would argue that Office Live Web Apps would largely enable this same anytime, anywhere access, but Google Apps simply does a better job of letting you create, interact with, collaborate on, edit, and share your documents from anywhere on the Net (and increasingly, from HTML 5-compliant phones). That isn't the case for everyone and it isn't the case for me all the time. Take a look at the gallery and let me know if I missed any big ticket items. While you're at it, let me know if Apps is enough.