Why buy the iWork package when...

You can buy the three programs separately for cheaper?

The iWork package is $79.99, and includes pages, keynote and numbers. If you buy the three separately, they're $20 each.... which would be $60.

Am I missing something?

Who sells the iWork package? For at least the last year the 3 parts of iWork have been on the App Store only as far as I know. And you are right, get them from the app store.

It's available on the apple online store, under Mac software.

One license for 79.99, family 99.99.

It's similar to Aperture, it has a much lower price on the MAS than getting a boxed copy on the Apple Store.

The iWork DVD is still available for people who either PREFER to have a disk or HAVE to have a disk (because they haven't upgraded sufficiently to get the Mac App Store).

One of the MANY benefits you get from having moved up to 10.6.8 or later is dramatically cheaper software and the Mac App Store.