I have worked with POI before, and it is certainly capable of generating Word documents. But the devil is in the details.
There are thousands of functions in Word: you can put numbered lists starting at number 13, with negative indentation, into two connected cells of a table included in another table, which itself is part of the list of markers ... you get this idea. When the POI documentation says that they are under development, it reflects what is likely to be an eternal state in an attempt to catch up with the (for us, undocumented) Word specification.
Documents with a fairly "normal" set of functions used are well supported by POIs, whose interfaces and methods are reasonable and consistent, but sometimes require little work. But, as Pascal says, documents with a not-so-inconsistent feature set are also supported by RTF. I have almost no experience doing RTFs, but it's probably a little easier than working with POIs.
If you work in an environment or for a client who insists that your prepared documents be .DOC and not .RTF , then the POI is your only choice if you cannot enter the step in which you use the Office automation bit to converting RTF to DOC.
Update: I had a few more ideas.
Using a POI or creating RTF documents is something you could do on almost any platform. For example, at my work, all the servers that perform this processing work under Linux.
However, in the likely case when your programs run on Windows, there is another alternative: Jacob http://www.land-of-kain.de/docs/jacob/
Jacob is the COM interface for Java; it essentially allows you to “remotely control” Windows programs such as Word and Excel. The document that I linked to above does not apply to Jacob’s own site, but to one page with recipes for using Jacob’s culinary cutter. The project itself is located at SourceForge: http://sourceforge.net/projects/jacob-project/ But people say, and rightly so, that the documentation is a bit lacking.
Jacob has an edge over all the other solutions that you mean with the "real" Word, and therefore all the possibilities of Word are available to you. This would be an alternative if there were detailed aspects of your document that simply cannot be processed using the POI or the RTF format.