Thanks Cem, good to know. This 'data quality services' looks like one to watch. But it seems to me you could have achieved the same result as in your example by using a standard dot net xml assembly, rather than the new data services one.
I think it's about time xsl transformations were added to the otherwise comprehensive set of xml features in sql server. There is often reluctance to add CLR assemblies to sql, and yet many of the sql xml features are nothing but wrappers for CLR functions....so why not add just one or two little xsl transformation functions out of the box. After all xsl is often a good method for reworking xml - and not only a method for producing html etc..