It does NOT work. I am incredulous at this change.

The people who got rid of the 'paste from word' radio button that DID work were likely of the same opinion as you that nobody used it..

I say this because they didn't bloody test it!

The reason why I am so incredulous is I spent two hours trying but ultimately failing to properly format a post.

The most important function of Wordpress, surely is to publish posts. These guys should not be allowed to remove that in such a cack handed, unplanned out and vulgar manner.