XLSREAD is incompatible with OpenOffice, prompting users to seek alternatives. The discussion emphasizes the advantages of using CSV files over XLS, highlighting that CSV is a universal format easily handled by various spreadsheet and data analysis programs. Unlike the binary XLS format, which can lead to compatibility issues, CSV files are simple text files with values separated by commas, ensuring consistent functionality regardless of the software used to create them. Users are encouraged to utilize the CSVREAD command for loading data, as it simplifies the process and avoids the complexities associated with XLS files.