Pretty much. The pattern I'm noticing is users see that drawing in Word is cumbersome (layout features "get in the way") while in PowerPoint they can put things all over the place, so they naturally gravitate towards PowerPoint when they feel they don't need a classic letter layout but rather an "empty canvas" they can do whatever with.

It can all be done in Word too, but most people I've seen using Word don't bother even setting image placement for each image or change margins. They just stick with what's default.

I actually agree with you that a whole mode is an overkill, but I think whatever they put in they'd have to market pretty well so users would consider it at all. So it also makes sense to me they'd say "use PowerPoint instead" as it is what many are already doing.