Many image files, specifically screenshots look awful in JPG format, please make PNG the default format to provide the best quality output. Another way to do this would be to ask users whether they wanted to optimize for output image quality or...
It's easy to detect the DPI of the original PDF file, please just include the artwork in the resulting word document at the source resolution. So if I had an image that was 150x150, it should be the same resolution in the word document.
Every program worth using has errors, including yours. I will further assume that you don't plan on fixing every single bug in the millions of other programs that might be running on people's computers. To claim that you can make a system error...