My personal experience is quite the opposite. In our research team, we collaborated on papers, proposals, theses and similar documents and we exclusively used Latex. Being a text based format, it lends itself well to version controlled (svn/git) repos. It was very easy to track changes and resolve conflicting edits. I don't think any binary format would have worked as well.
> with people who don't know latex
This is, however, painfully true. Newcomers had to learn Latex; but given the prevalence of it in the academia, I doubt it was a bad investment.
I've collaborated on notes using latex before on github and PR discussions, inline comments, and git collaboration features like branching, descriptive commit messages and diffs, etc. are awesome for productivity.
That said, everyone will need to know how to use latex, git, and GitHub, so gdocs certainly has a simpler workflow.
There are even wrappers that integrate this with git, so just "git latexdiff HEAD~5 HEAD" will give you a "track changes" PDF between the current version and the one from five commits ago.
I've used this on complex papers where editors have requested it, and it works fine. Once I had to manually tweak the .tex file produced by latexdiff, but it was a very complex use case (packages added and removed between versions) and pretty easy to fix.
We're working on it ;)