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I don't think the people making the first versions of Word ever envisioned 2 mb sound clips or 10 mb movie clips being embedded in a document, nor had the capabilities of supporting such a system in any type of standard method.

And switching the documents to an XML format would potentially make the whole system capable of a certain amount of forward-compatibility. Current version of the software should (in theory) be able to open a future version of a document, while just ignoring the sections it hasn't got the capability of rendering. That'd be the right way to do it. I'll bet, though, it won't work that way when the time comes. Mark my words.
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Tony Fabris