iWorks is decent but Microsoft Office 2011 for Mac kills it, imo.
Yeah, the Macbook has only got 2gb of RAM, however, so I'd go for the Pro. Looks sleeker too, only a $150 or so difference between the two. You can upgrade your Macbook Pro RAM from 4gb to 8gb too, I'd recommend that.
DO NOT get the Apple LCD Cinema Display. It looks lovely, but you could buy a brand new iMac for the same price, it's ridiculous! I'm using a £150 HD monitor and bought the Mini-DVI to HDMI and it works perfectly