They want to push people into a subscription for years. The free online MS office stuff is okay, but then you need an account and files are online, some people may not want their files online. Also, the free online stuff is limited
It is fine for most home users as long as you don't need a database and 100% MS office compatibility, because it is a fair bit off there.
There is also Libre office, Only office and other free ones.
Windows is not a big money spinner for MS these days, cloud stuff is where MS makes the money, like Microsoft 365.
If this Euro Office do become used a lot, then it may give MS something to think about because Euro Office will also be cloud based.
I hope it does do well, we will see.
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