You are roughly correct in your assumptions, but it depends a lot on what you would use Word for.
I used Works for years, and didn't find any problem NOT having Word.
If all you want is a basic word processor to write letters and so on, Works is perfectly adequate.
Try not to get caught in the trap of buying software you have no use for. Most people only use a fraction of Works (or Words) capabilities, so have a good think about what you require, before spending your money!