Storing XML as a string is really not very useful since you can't query into the document contents. You also can't create indexes on particular elements or attributes for fast access.
Microsoft has a good explanation of why it isn't necessarily appropriate to store XML structures in a conventional RDBMS. I'll quote it here:
"The XML data model has characteristics that make it very hard if not practically impossible to map to the relational data model. XML data has a hierarchical structure that may be recursive; relational databases provide weak support for hierarchical data (modeled as foreign key relationships). Document order is an inherent property of XML instances and must be preserved in query results. This is in contrast with relational data, which is unordered; order must be enforced with additional ordering columns. Re-assembling the result during querying is costly for realistic XML schemas that decompose the XML data into a large number of tables."
http://msdn.microsoft.com/en-us/library/ms345117(SQL.90).asp...