Google Docs has a feature set more in line with Wordpad (the stripped down word processor that comes with Windows) than Office Word. I can't understand how anyone can use it for anything at all without running into its limitations, so I'm not surprised it's not all that popular outside of basic shared documents.
The vast majority of documents people write for within Google Docs’ limitations. I wouldn’t use it for a book or maybe a dissertation. But it works great for a lot of day to day internal business documents.
This is wishful thinking. Google Docs is only hovering around 10% market share.