Google-docs – What does “All changes saved locally” mean

Doesn't appear to be so. Google Docs isn't a full-fledged word processor after all.

What happens when text from one page gets pushed over to the other? Do they both get new revision numbers? Is it automatic?

Did you try uploading one of your Word documents and seeing how Google Docs converted it?

You might be able to fake something up by using the footnote feature in a non-standard way. Insert a footnote at the top of the page and the text for it should appear at the bottom of that page.

Whatever way you do it you're going to have to manually update each time.

Replace the beginning of the url with the Google Docs viewer.

This is what you need: