I want to create a script that would do the followings:
Now I am aware that you can not create scripts within the "Document" container (only Spreadsheet and Sites), but can a standalone Google Apps Script read or write directly to Document like the way it could with Spreadsheet?
I read somewhere that Google Apps Script can not read text from a Google Document, but only text and CSV. Is that still true with the recently update to Google Apps Script?
Yes, this can be done. The easiest example to follow is Employee of the Week example. This takes in user input , merges it into a doc and automatically emails the result out to the user, which you can remove if you like. There also a video tutorial. Should get you pointed in the right direction.