Well, well. I spoke too soon it appears when praising certain aspects of Google Docs.
Firstly, Google Docs reports that posting a document to my WordPress blog ‘has not been published’, when in actual fact it had.
Secondly as I edited the document back in Google Docs after publishing and then clicked publish again a second posting was actually made. It does not overwrite the original. This is not how Windows Live Writer works, and personally I prefer the Live Writer method.
Thirdly, images uploaded actually get published to the docs.google.com server and not to my hosting provider.
Fourthly, Google Docs suffers from some of the same formatting issues that WordPress’ own editing tool does in that when changing fonts and paragraphs styles you seem to get stuck with the styles that Google Docs wants to use rather than using the inherited styles from your blog CSS.
Some fixing needs to go on here.