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I was making an Invoker having mostly only the different words of power-powers (Word of Fiery Condemnation/Bewilderment/Annihilaion), when I noticed the Shroud of Awe Utility power was an Invoker power.

This made me wonder how exactly Words of Power work. Does their power work upon targets hearing them, or  is some force unleashed upon the world when they are uttered? Because in the earlier case, unleashing it upon every creature within 500 feat would be very powerful, and create some interesting options outside of battle.

As Matyr says. HOWEVER, don't let the rules get in the way of the story. I mean that things should generally work in accordance to the rules because that's what the players know and expect, and it usually works. OTOH rules are just a way to make the game work, tools, not a law to restrict you. There could be a situation where one of these powers DOES work on everyone that can hear it, or there could be 'greater words of power' that can be learned and used in a specific situation, like a very specific ritual or one shot consumable boon or something. It would be logical that something like that would fall to the Invoker to utilize. Build on it, make a story around it, rework some PP or ED to bring the power word speaking character's destiny to its fruition.