It looks promising so far, but I'm still waiting for some screenies of the graphical view of the designer.
I snapped up this from a forum post:
The original schema designer in VS has been removed from the product. There will be a new schema designer, but it will ship in off-cycle release after the Orcas is shipped. Currently, you have to use VS2005 to edit the schema file, or use the Xml Editor, which looks like a text editor, but does provide intellisense and schema validation.