Believe it or not, people like nice things. Microsoft Office looks nice. Libre office looks like a car accident. It's shallow, I know, but this is the response I get every time.
Everyone I know hates it. It is a small sample, true, but it says something. So I think, the fact Microsoft is so strong is to be blamed on the alternatives, or in this case only one alternative.
We need to look at this as https://en.wikipedia.org/wiki/Survivorship_bias
Turn it around. If it would be good, people would jump on it. Especially small companies.
Google workspace is a web app, no? So it being better than desktop is comparing different things. I use it and I like it, especially since I don't need advanced Features Microsoft offers
We have no good alternative. We have an alternative.