The Xml support as it is now in 1.0.2005.1 is the same as with v2. We thought about adding XQuery support, but these queries can't use parameters. This means that we had to concat the provided string into the query which can lead to sql injection attacks if you're not careful and we want to avoid that at all costs.
It's still possible though, through a custom IPredicate implementation ala FieldCompareValuePredicate, however we won't support it.
This also means that Xml field data is usable in v2 as it is now.