Google Docs on Android is, to put it politely, crap. While the app was recently updated with a nice tablet interface for viewing documents, editing them has always been kind of a pain, and ugly to boot. Microsoft is stepping up to save the day with their simple, elegant OneNote app for Android. Because screw your expectations.
The only downside seems to be that if you already have .one files on your Android device, OneNote won't read them. Disappointing for already-avid users, but for the rest of us, OneNote will act very similarly to Google Docs by syncing with your SkyDrive account automatically. Any notes you've already stored will appear, and you can access your mobile notes from your desktop.
OneNote isn't a full-blown document-editing suite. For tasks that you'd want to accomplish on a phone, however, it is remarkably simple. Beautiful, even. Photos can be added from the gallery or the camera, you can easily add bullet points or checklists, and text is rich. Not to mention, in stark contrast to Google's own offerings, you are not required to load up an embedded web app to edit documents. So that, alone, gives Microsoft's entrant a leg up.
OneNote is free in the Android Market right now. You're limited to 500 notes on your SkyDrive, but you can pay $5 to remove this limit via an in-app purchase.