Does anyone have any updates on this since the alpha 0.2?
Interesting idea, and is actually what I thought LINQ to XML would be until I looked in to it.
This is a semi-official blog from the Microsoft XML team: http://blogs.msdn.com/xmlteam/archive/2006/11/27/typed-xml-programmer-welcome-to-linq.aspx
The series of posts dried up sometime ago: http://blogs.msdn.com/ralflammel/archive/2006/11/13/table-of-contents-for-typed-xml-programmer-series.aspx
Perhaps its been shelved for now.
There is actually an old blog post from Scott Hanselman on this exact project, and the fact that it appeared dead to the outside world at one time. Of course that was a year ago, so some things never change :)
http://www.hanselman.com/blog/LINQToEverythingLINQToXSDAddsMoreLINQiness.aspx
UPDATE:
Found this forum thread, which seems to indicate the project is no longer active:
Here you can find the Status of LINQ to XSD
More info you can find here linq-to-xsd
I'm still hoping that this project will be picked-up for .net 4.0 and VS2010
Microsoft has now released LINQ to XSD as Open Source so that the community might care for it.