alt Hacker NewsI have met very few non-techies that could tell the difference between Word and Wordpad or use them any differently.
Most people below the age of 30 can switch between Google Docs or Word without blinking. They don't use more than a few of the features of either.
This "big hill" you mention is a fantasy.
You're right for home users. In businesses, the hill is also that some users are power users that have locked themselves in, in slightly different ways between the different power users. Also the company has also locked itself in by drinking deeply from the Microsoft well (e.g. AD and sharepoint and Windows etc) and marketing away will cost them a lot of time and effort, and therefore money.