Via Don Box, I see that Oleg Tkachenko is generating WordML and feeding the output to Word, and it's working!
This feels important to me, and was exactly the kind of thing that got me all excited when Jean Paoli first showed me this stuff way back when. I can think of all sorts of applications where the ability to generate a Word doc on the fly is going to be real useful. A lot of parts of the world still run on paper, and Word is a pretty good way to generate it.
Two comments: First, I think there are going to be lots of easier ways to do this than the way Oleg did with XSLT. Second, his first prove-it-works doc contained the text “Hello Word!” Now that's funny.
