It's about time. The into to this article states:
With wider adoption of XML, XSLT, XSD Schemas, and other applications, XML is being touched by developers at various places of the application. This mainstreaming of XML requires that developers be supported with better development tools.
Frankly I think Microsoft is late putting this support into the VS.NET IDE... it should have been in there in v2003, or even v2002. At any rate, the support for v2005 looks killer. Biggest improvement: XSLT debugger. So long XMLSpy... looks like my new IDE is going to do everything I need. Now, If I wasn't so timid about installing it side-by-side with my 2003 version.
Sitenote: I did install VS.NET 2005 Beta 1 on a Virtual PC clean WinXP Pro SP1a image recently. Aside from being a monster install, I liked the beta. Too bad it's slow and has some bugs in it or I'd start using it now. Anyone tried installing it side-by-side with 2003... any issues? Also wondering if you can switch from .NET v1.1 and v2 when using the IDE (not ready to switch all my projects to a new framework when it's still not RTM).