I hated the idea of a cloud-based Office before it launched, but I signed up this past spring and have been rather impressed. I need to install the suite on multiple PCs, sometimes juggling around, so I like the fact that there's no hassle in deactivating and reactivating licenses... because quite frankly, ringing up Microsoft's customer support line is a major chore.
I still like the idea of boxed copies, but since Microsoft prices those to be stupid expensive, I'm glad Office 365 is at least a really good value.
I will definitely second that. I was a bit irritated by the thought of a subscription Office suite as a service as well, but now that I have it for only $99 for the year and can install it on multiple PCs, it's actually pretty awesome. MS Office is still the most robust suite of office apps out there. Skydrive integration and OneNote are also pretty cool.