Much Much more better. I am working now on my third manuscript (two accepted already) using Manuscript/Papers. Still some glitches when moving subheadings but nothing serious. Copy and paste works efficiently.
Papers integration is fine (I am not using the button on the ribbon - I prefer the pop up).

The next step will be to be able to edit the bibliography directly in word since the reviewing process requires word and I doubt that the workflow can be maintained in Manuscriptapp.