I, too, hope to just use my iPad2 for everything. So far, so good. I don't know about iWord, but I purchased Pages, a word processing program for the iPad, from Apple's App store for $9.99; it's not super fancy, but it does the basics, and it does seem to convert word files pretty well (so far).

I also had to buy a new printer (my old one was ancient, and certainly not wireless). I realized what I needed was an AirPrinter, like you mentioned, so I could wirelessly print from my iPad2. After reading a lot of reviews on Apple and Amazon, I settled on an HP Envy 100 e-All-in-One from Amazon for about $169. I like it very much so far. If you have a wireless network set up at home, which I happen to (Cisco/n), the printer will sniff it out and basically set itself up. My iPad's on this network, too, but I think I could use AirPrint even if it wasn't, since it's an AirPrint compatible printer. It seems that only a few wireless printers are specifically AirPrint compatible. The Apple site lists several, but definitely check around for the best price if you see a model you like. I'm not an expert, though, so I don't know if other non-AirPrint specific wireless printers would work on a network with the iPad (this is getting confusing). In any case, so far, the Envy works like a dream. It's not high capacity, though, so it depends on your needs. With the larger ink cartridge, it should get about 500 copies.

I completed my iPad-only set up with a wireless Apple keyboard and an adjustable Belkin iPad stand sold by Apple as well. (I also have the charging stand I bought when I got the iPad).

Anyway, hope this helps. For my current computer needs, the iPad does the trick. Hope it works for ya...