GMail now allows you to open the Word attachments in your mail (.doc, .docx) right from your browser, even if you don't have MS Word installed locally.

There is a "view" button beside your attachment which opens it in a browser.

Recalling from memory, earlier GMail allowed you to either "open your (Word) document in Google Docs" or "download" it. The difference seems – now the "view" button which takes you "view" (read only) document mode, and a further click is needed to take you to "edit in Google Docs" mode.

Or is my memory playing tricks on me?