Cowboy,
What I have done in the past is created a tool that creates all product data as separate files, so each phrase, template, plugin, etc. is a file that is controlled through SVN. The system would also read and save these files to the DB at runtime on my development server. This avoids the need for XML for but exporting to production servers.
At first we used XML, but it was such a major PITA I came up with another solution for my team.
Really, this is something Jelsoft needs to address if they want to encourage any serious development from the community.
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