Office 365  Office Web apps and Office 2010

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I am having some difficulty distinguishing exactly what is involved with Office 365 in particular when it comes to Office Web apps and Office 2010.  It seems these are two very different versions of Office. Please comment on the following statements in the context of a small business scenario (not an individual usage scenario)

1)  It seems that Office Web apps is a 'lite' version of Office that does not require any local installation of software - it is close to Google apps in that I access it through an URL.

2) If I want to duplicate the full Office 2010 feature set with Office 365 it seems I have to install Office 2010 locally albeit as part of the Office 365 package but at additional cost above and beyond Office Web apps.

3) What advantage/s benefit/s do I gain by doing 2 - installing Office 2010 locally and integrating it with Office Web apps - as opposed to just plain installing it locally?  
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Top Expert 2016
Commented:
OWA is good when you are mobile but has a reduced instruction set and no management hassles.  Full Package is for your desktop/laptop for increased breadth of supported features, speed, higher management cost.

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Commented:
Thanks. Still not clear on the answer to my 1st question:

"1)  It seems that Office Web apps is a 'lite' version of Office that does not require any local installation of software - it is close to Google apps in that I access it through an URL."

Is the above correct? I don't install any software, just create a 'shortcut' to a Web page?  Is the Web page a Sharepoint page?
Top Expert 2016
Commented:
office 365 has its own webpage and is accessed through a browser.. no software to install.. office 2010 is an option on a monthly basis though.. and the web page is not sharepoint, or lync but those options are also available.

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