word ... will allow simple desktop publishing
I don't know where to begin with this... OK, it's probably fine, as long as you're not dealing with publishing professionals. Word is pretty rudimentary as a page layout tool, to say the least, but it has the advantage of being something that most people are reasonably familiar with so the learning curve isn't as steep. You will soon run up against its limitations though.
However, if you need to get a document professionally printed, at least Mac OS will allow you to export it from Word as a PDF, which is a big bonus over Windows.
I don't know Scribus, as mentioned by fuaran, but it looks interesting. It also appears to have a vibrant online community who share resources such as templates, which could be very handy. Might be worth looking into once you get sick of wrestling with Word.
Personally, I won't settle for anything less than InDesign, but that's the industry standard for my line of work so I can justify the expense.
Pages is acceptable...
On what planet exactly?