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I work at Microsoft, and tend to hear a lot of these descriptions at work. Mostly there are the xml purists on one side, and the rdbms fans on the other. It's already quite easy to integrate the two, if you think about the possibilities. First you could store xml document in MS SQL 2000 Server as big "BLOBS" OF xml, then output the blobs as needed on basis of sql or xpath queries. On, say, a web server, transform the xml document to appropriate xhtml output,using xsl, and this can be handled by recent browsers.
This doesn't seem too hard, and seems to allow you some of the powerful advantages of both. On another thought, if you want to integrate data from almost any disparate systems, it may be the easiest to output the data to XML, or to a form that another transform could convert to XML, and again with SQL 2000, you can pass valid xml in directly to a table.
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