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On the subject of bibliographies, evaluating the built-in tools is sort of beside the point, because neither has even adequate functionality.I agree that both are lacking. The format of embedded citations is worth mentioning. OOXML has a finalized model. ODF doesn't. ODFs model will hopefully be better than MS Word's, but kudos to MS to actually implementing something.
However, if you use Word, you can use EndNote, which is extremely powerful, and more importantly has at least in the academic world become the standard.Endnote is popular, but hardly ubiquitous. Many academics use LaTeX still. Even those who don't have a wealth of programs to choose from to manage citations (unfortunately, many of the popular ones are all commercial/proprietary garbage from ISI). And there are still A LOT of researchers who just do this whole thing manually.