Is there a compelling reason to switch from XP? Why, of course! It's SO much prettier! ;)
Seriously, I had to buy a new laptop this week - I found one in particular that I liked, but it came with Vista on it. I debated whether to keep Vista on it, or scrub it clean with XP Pro. I talked to enough developers who were using Vista, so I took the plunge. All of my client development applications are running fine on it.
Is there a compelling reason to switch? Probably not. It's glitzy, it's sexy, and there's a coolness factor.