I use Google for a lot of things. For blogging I completely rely on google reader and google notes. For my daily job I use Google docs. The most important reason for using Google docs is being able to work at home as well as at work in relevant documents. Sometimes I use Google docs for collaborative work. For instance working on a research protocol with others. The only trouble is that there is no reference program for Google docs such as endnote, reference manager or bookends.
Also very important is the fact that you can use google on any computer and operating system such as apple leopard, suse linux or windows as long as you are online and in possession of a computer with a browser.
Other scientists use google as well, notably google docs and even gmail as can be read on Survival Blog for Scientists.
After having followed each and every update of the MS-DOS and Windows operating systems for the last thirty (30) years have had it with Microsoft. I am not going to defend the Redmond boys any longer when my colleagues shame them.
Recently found more interesting information about google docs. A practical Guide
A Practical guide to Google Docs: Learn how to do anything and everything with your online Google Office.
Thanks Lifehacker.com: Google Docs explained. More information on Google.