I went through this sort of thing with a friend who was writing an autobiography. He started out with Pages on his iMac, which, if possible, is worse than Word as a starting point - although the "typewriter emualtor" factor is maybe more important than the software. I had to nearly break his arm, but finally got him onto LibreOffice and taught him the wisdom of styles. From that minute the project went well (his book is on Amazon and elsewhere), and he now loves LibreOffice!
LibreOffice plays really well with HTML. Doing the styles is easy, and Calibre takes the .odt files as an input...and can give you a great-looking ebook. It's free and open source--give it a try.
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