See, that's a service with an online component that takes serious infrastructure and engineering to keep working. THAT is something I'll be paying for [I am paying for it]. A word processor is not in that category

This is what you, as the end user, observe. What you're not seeing is the small army of web services that are silently working in the background to keep that word processor feature rich. You're not thinking of the recurring costs to the developer, that allow you to start editing on an iPhone, and seamlessly continue editing on an iPad. Or the costs to the developer to maintain the infrastructure that allows you to share word processing documents across popular file sharing sites on the web.