As soon as you update it, quickoffice will have basic but adequate word processing.
Yeah, you need to install Preware, and in so doing, you might as well overclock to 1.5Ghz (or, technically, clock, as I believe it's underclocked on the Touchpad):
http://www.pcauthority.com.au/Feature/267962,top-5-tips-for-tweaking-tuning-and-speeding-up-your-hp-touchpad.aspx
It's absolutely smooth on 1.5Ghz - there are other methods & patches to overclock to 1.7 & 1.9Ghz - I haven't felt the need, though.
Preware has all the homebrew you can eat. There's a bit of a fiddly hack to install Kindle (you have to use a homebrew app called Impostah to spoof the Kindle app into believing that your Touchpad is Merkan), but it's worth it once it's on.
For the moment, I'm perfectly happy with WebOS.
Best paid-for app, btw, is Kalemsoft Media Player, which plays loads more video formats than the clunky built-in app. In conjunction with the free Kalemsoft Media Streamer, you can watch any video on your Jim machine on your Touchpad