I just finished using Google Docs for the first time. I had to write an essay for another class and instead of writing it in a normal word processor I used Google Docs. Google Docs was constantly automatically saving my work, and when I was finished I was able to share it with a classmate so she could read it over.
I would love to have students write all their reports using Google Docs. They can easily share papers with each other for proof reading, and peer conferencing. When they are finished their assignment it's so easy to have them email it to me for marking. By having students use Google Docs in class I wouldn't have to haul papers around to grade them, I wouldn't even have to lug my laptop home with me. I would be able to access all the students assignments from any computer. Google Docs is easy to operate, and you'll save a tree.