Were they? My recollection is that software back then had more features. Software today is neutered in comparison. (Compared Google Docs to Word Perfect from the early 1990s).
Google Docs isn't the product. It's free. You're the product. And it only needs to be good enough to keep competitors from creating something so great that it removes their first-mover advantage. It's clear that Google has given up developing new features for it.
[ADDED: And as other have mentioned while the collaborative editing of Google Docs doesn't scale all that well, it's a great remote collaboration tool. Never want to go back to sending docs around.]
I actually never much cared for WordPerfect with all its formatting codes and so forth. I was actually a bigger fan of early DOS-based Microsoft Word at the time.