A little over two months after Google released its Google Drive apps for iOS devices, it has received an update which now allows users to edit Google documents within the cloud-based apps. Google Drive is a cloud-based storage service similar to Dropbox, Box.com, and iCloud. It provides users up to 2GB of free storage space, and up to 18GB of additional space for registered referrals.
The new version 1.1.0 of Google Drive for iOS includes the ability to edit and collaborate on Google documents in nearly real time, and sync those documents between devices. Edits appear to collaborators in seconds. Documents uploaded to Google Drive can be accessed on the web, as well on cross platform devices–including Mac, Windows, Android, and iOS. These in-app editing features are not yet available in Dropbox and Box.com, and they only work with Google Doc-supported files, including plain text and Word documents.
The update also enables users to create folders, and documents within Google Drive, just as you would in a text application. The app’s text editor includes all the basic formatting features (e.g., bold, italics, font styles, lists) and sharing with other Google users.

Users can use iOS pinch-to-zoom navigation to zoom into details of documents, and they can edit documents as long as they have an Internet connection. Google says that editing is available in all supported languages, including those with right-to-left text. Users collaborating on a document can see changes in almost real time, as well as upload photos and videos from their iOS Photo Library.
Source:TechCrunch
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This is one of the most awaited update for iOS Google Drive users. Before this was, it was useless app because there was no editing.
Yep, it definitely brings the functionality that you can’t get with say Dropbox.
Thank God for having this update. Now I don’t have to download other apps to edit my files on Google Drive. :)
True, it saves you from having to send documents to another app.
I don’t think you can edit ‘plain text’. It appears you can only edit documents in the ‘google doc’ format.
Try saving something from notepad onto your google drive, and then editing from iOS.