Google Docs was first mentioned to me by a colleague as a low-tech possibility for some of the features available in a wiki.
In the end, I decided to go the wiki route for group editing projects, but I have continued to use Google Docs for personal use. Mostly, I use it for the same reason that I admired the improvements in Google Desktop-- It makes a great workspace for people who use more than one computer.
Say, you started working on something at work and you wanted to finish it at home. Instead of sending it to yourself as an email, etc., you can upload it to Google Docs. Google Docs allows you to preserve formatting, and lets you save documents as word documents, spreadsheets, powerpoint slideshows, etc. A nice feature is the revisions tab that allows you to track changes. Only you have access to the documents that you've uploaded, unless you decide to share them with someone else.
It does make me pause, the idea of using different Google services to work with different aspects of practically all of the information that comes past my fingertips, but I can't help it. They make it so easy.