My opinion is that it will be beneficial to have a "procedural language" available to perform functions that TSQL is not as adept at.  That is available today on the client side, obviously, but not quite so close to the data itself.  This will most likely create opportunities to make faster data access available to the other application tiers.

Now, I'm not ready to go all chicken little and claim that C# will ruin my database, because it is not the best tool for getting data in and out of a database *in the general case*.  I don't believe that the presentation tier guys are going to ask for CLR in the database because they are used to having the recordsets handed to them ready-to-go.  What I do see is that I can find a better (faster) way to get them data in very specialized cases and for that I shall be eternally grateful.

We'll see what happens...

jg