I think this introduction of new data type is to help to re-construct the records back to hierarchical view easily (remember the "Using APPLY" sample that need to call the function recursively ?). With the syntax like GetAncestor(), GetDescendant(), IsDescendant() , etc, you can discover the level of the records easily (why it seems gearing towards CLR coding??).
There're few articles with samples:
The CTP version of MS SQL 2008 can be downloaded from here.
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