Writely and Google Spreadsheets have been merged and will exist by the name Google Docs & Spreadsheets. Writely users and Google Spreadsheets will now be redirected to Google Docs & Spreadsheets. All the Writely documents have been migrated too. The interface for the Docs portion resembles the GMail compose window with additional tabs for other functions like Colloborate, Publish, Revisions etc.
When I tried to publish this doc to my Blogger account, I got an exact error message telling me that my Blogger account has been migrated to the new Blogger Beta. My next aim would be to publish to WordPress. Let me see how that goes.
We now have the option to manage our documents and spreadsheets together. A PIM and presentation tool could make a complete office suite on the web, similar to Zoho. It might happen in the coming days. Whether I am happy or not with this merger depends on how successfully and accurately I can publish to WordPress. As, I found out, the publish failed. No reason given.
Apart from the small glitch, everything seems to be fine. Hope that in the days to come, Google fixes this issue.