X# vs. XSLT

Rumors says that Microsoft (Seattle USA based small software company) is about intrduce a functional programming language to progress XML called X#. According to an article on eweek this new language is about replace XSLT?
“Although XSLT is fairly widely used, its power is limited, and it is fairly hard to use.”
Hmm, I think this comment was little contradictory and wrong. I have been working over year closely with XSLT and I can’t see many limitations on it.

Anyway, I think a real problem is to get legions of VB/C#/Java -programmers to think in functional instead imperative.