Currenlty users will be unable to edit documents in their G1. Maybe there will be some application available in the future that will allow you to do it but I doubt it will be very effective.
Some Google executives were talking about it a few months ago and said that they were looking for ways to incorporate it into Google Docs but found it to be hard to incorporate at this time. So as of now, Google Docs will be read-only.
Edit: Here's a quote from Google
Quote:
Say you're a businessperson and you have an expense report you need to maintain … is it the best user experience to open up a browser on your phone and then go to Google Spreadsheets and try and navigate around a full sized spreadsheet in this little mobile application? Or is it better to have liked a native application that’s well integrated with the device that is able to present like a mobile optimised user experience?
What we’re finding is that actually there is no really globally applicable answer to that question. The example I gave you about Google Spreadsheets is probably an example of something that would benefit greatly from having an optimised user interface for a mobile device."
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