Using replace in templates

[Taragon]

Let's say a template contained to word 'foo'.
Would this be possible without the use of a plugin:

<vb:if condition="foo">test1<vb:else />test2</vb:if>

Let's say I'm looking for a sort of inline replacement.

Nope, that wouldn't work as you intended, though I am interested to see how it parses; my guess would be that it would check for a constant and convert the value to a boolean.