Pages for iOS 7 was redesigned by Apple in the fall of 2013. An update to this review, including iWork in the cloud, is coming soon.
Pages for iOS 6
Pages is the premiere word processing application created by Apple. Pages includes wonderful templates for flyers, resumes, posters, and standard letters and documents. Text and images are structured by styes used to format documents. Headings, subheadings, and paragraphs are presets, so that documents can easily be saved as pdfs and epubs. Multimedia can easily be integrated and photos and graphics can be modified using the inspector. If you have concerns about compatibility with Microsoft Word, you don't need to worry. Pages can export files to Microsoft format. Pages is $9.99 in the App Store.