Anders Hejlsberg and Chris McConnell: Reflections on LINQ, Desktop Search, WinFS, Functional and IntNov 28, 2006 at 1:57 AM
Just because a schema doesn't satisfy everybody, doesn't mean schemas are a bad idea! You might not be able to create a schema that satisfies everyone, but it is an order of magnitude simplier to create a schema that satisfies one organization or describes how a particular common application is modelled!
And the performance argument about WinFS not being able to perform? Because it is rigid and normalized? Sounds like FUD to me...
Round one to the desktop search guys, bring on round two!