Excellent points, Carol.
Broadband access and cost
This is a real concern, and not just in your backyard. In the US, broadband access is seriously overpriced and getting slower by the day compared to other countries. Anyone noticed Korea lately?! If it were up to me, governments should provide broadband access to everyone, not the private sector. As for repeated attempts to constrict personal liberty at the expense of your IP address, that's what both the US and UK have become this decade. The sheer [will to] POWER to spy on every single part of our lives is never satisfied. Even George Orwell would be aghast.
The future of cloud companies
True, anyone could be bought out. But though there's been many online suites, only the best have survived to date. Microsoft can't decide whether it wants to buy Yahoo or not, so its own online strategy is a murky as anything else it does. Does anyone know where Microsoft is taking Azure and Live, btw?
Vendor lock-in; proprietary formats
Microsoft practices this even in Office 2007 by not accurately converting documents from or to other formats. Remember the seriously bloated HTML code that Office 2000 and 2003 saved in? It was astounding. Office 2007 still uses proprietary elements within MS-OOXML which it does not share with other vendors, even though it's an ISO standard format now. To read .doc files, you have to use compatibility mode. Point is, I couldn't keep up with it, nor could 18 years of Microsoft-formatted documents I had accumulated. Switching to ODF (which is not dependent on OpenOffice alone) cured that. On any Linux machine, for example, I can easily open and change the contents of any ODF file from the command line.
I can't dispute the excellence of MS Office in many, many ways. Just its (proprietary) formats.