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Recent discussions and requests seem to indicate that the update language taskforce is working on extending XQuery into a scripting/programming language. Given the amount of time that it takes to get a specification finished, I strongly urge the working group to give us a declarative update language (and the transforms for XQuery) as quickly as possible and postpone any such programming language extensions to the next release. There is a vast consistuency out there that wants an interoperable update language that is declarative in nature, and not yet another web programming language.
The Working group at its August 2006 F2F meeting decided that the XQuery Update Language will not include the XQueryP work, which may be considered as a seperate document on a different timeline.