We use SQL 2005 Express with lot of our tools, but I always felt that this was a developer database and has restricted capability. SQL 2005 Express lacked support for Full-text search,Reporting Services and Synchronization services.
But there is support for Full-text search,Reporting Services and Synchronization services as part of the free SQL Express 2008. in addition it also supports LINQ and allows usage of more number of data types than earlier.SQL Express 2008 includes support for transactional and merge replication and is limited to acting as a subscriber only and does not support acting as a publisher.
Hence I would use more of SQL Express 2008 for my software development. Will they also provide Profiler with SQL Express default install? I would love that. Till then I will continue to use the open source profiler SQL Server 2005 Express Profiler. will this work with SQL 2008 or I will look forward for open community support for Profiler.