Michael,

>The current recommendation is to write TSQL stored procedures for intensive data-manipulation functionality and managed code for functionality that is calculation-intensive.

That message seemed to come through loud and clear at last fall's PDC in the YUKON sessions I attended. I'm guessing that performance is a major issue for routine T-SQl stuff if you try to do it in managed code. Maybe the extra time until release will see some improvements there...

>My guess is that we'll see the use of managed code be abused in the beginning strictly because of the "neat technology" aspect of it.

That is a certainty. :-)