Why doesn't Microsoft Office/2008(& later) support RTL languages? I have Microsoft Office/2008 on my MacBook Pro. Office doesn't support RTL languages like Farsi and Arabic, and I know that Office/2010 (for Windows) also has the same problem.

Do you think the lack of support is because of business competition, or some other reason?
“Why” is a question for Microsoft, but I'm guessing it boils down to a simple lack of resources on the part of the Mac Business Unit. They have to prioritize certain features, and RTL support is not a priority for them.

To address the underlying need, you have several options:

OpenOffice and NeoOffice support RTL text in Microsoft Office documents.

Mellel has a reputation as the best RTL/multilingual word processor (it certainly has a nice feature set for it, like a direction breaking space so you can mix RTL/LTR in a paragraph), but I don’t know how good its Microsoft Office document interoperability is.

This would also be a use case where it might make sense to run Office 2010 inside a Windows virtual machine.