I would only use an unstructured data model, like how you suggest, if you are storing unstructured data or documents (e.g. friendfeed).
Alternative storage thoughts
There are many more suitable data storage systems for unstructured data than SQL server. I would recommend combining one of these with your existing structured database.
SQL Options
If you can't do this and must store unstructured data in your SQL DB, you have a couple of options, the datatype isn't really the only concern, how your data is stored is.
Some structure to allow an application reading the data to be able to easily parse the data without complex string manipulation functions.
Be able to define a model for the data in your application, so when you read the data, you know what you've got.
The following 2 options provide a solution to both these challenges...
XML - xml data type
You need to concider the data you are storing. If you need to return it and perform complex searches on the contents, then XML is your best bet. It also allows you to validate that the data stored matches a defined structure (using a dtd). See this article.
http://msdn.microsoft.com/en-us/library/ms189887.aspx
or JSON - nvarchar(max) datatype
If you need to return this data for display on a webpage or use in a Javascript, then storing as JSON would be easiest to work with. You can easily load it into an object model which can be worked with directly and manipulated. The downside is that complex searches on the data will be very slow compared to XPATH (iterate through all the objects, find ones that match).
If you are storing data from other languages or strange characters go with nvarchar (unicode version). Otherwise varchar would be most efficient.