Google has already removed this functionality on regular Google Accounts. They are set to remove it from Google Apps accounts as well.

Users would no longer be able to export their stored documents in the older Office file formats.

Google would support the newer XML formats (docx, pptx, xlsx) instead. Of course, they also support other file formats like rtf and pdf.

It might cause problems for users who are still stuck on older Microsoft Office installations on their local machines which are still used.