Word as email template is a powerful feature however the image rendering depends on the email client that it gets sent to. It's not great for formatting but great when needing data that SF email templates cannot call.
SF email templates can only call for data that's on the record the document generates from and maybe the contact informaton but nothing beyond that. Word as email template can do this but not great when it comes to formatting of the templates. It will be a powerful combination if we can use HTML for formatting of email for consistent branding and combine that with the data that the DocGen Package call.