Kent Sharkey is blogging about DevConnections, and has a blurb on Yukon. He writes:

Many people hear the Yukon message ("You can create stored procedures in any managed language") and think you have to. T-SQL will still be there, and will still be the best way to do much of your work.

Amen. For those than haven't seen the new stuff, there are quite a few great T-SQL enhancements. I think the marketing speak is that T-SQL is still a "first class" language for data access. Hardcore SQL developers and DBAs will get a lot more mileage out of the new T-SQL support than they will out of CLR code. However, I still think that the CLR integration enables us to push the architecture in some interesting new directions. The possibilities for moving code between tiers dynamically is an interesting one. In addition, the ISVs should have some interesting opportunities to plug in some functionality into SQL Server. One has to think that the CLR code is going to go a long way towards relieving the concerns that DBAs have had historically with extended stored procedures.