> And what about LuaTeX? I think that it is better to keep "normal"
> latex (which is usually pdflatex in dvi mode), pdflatex and add other
> TeX's as option.

I'd vote for LuaTeX instead of XeTeX, it's lot more compatible, iirc
only 2 options from microtype package do not work with it and it's
soft failure that really don't stop compilation (package is aware of
luatex and can check for it). It too support utf8 formatted documents
and OpenType fonts I think and is "next pdfTeX", so probably better of
two.

> btw: Why do we have %latex in Sage? Does anybody use it hevily in her/
> his notebooks?

I personally use SageTeX if I need to work like that and almost no
%latex. But I would use %latex if there was way to hide it without
using %hide that's visible in cell, for example when it would work
like TinyMCE edited text cells with double-click to edit or similar.
Then it would be sweet to embed TeX in notebook, making it look nice
especially in published worksheets.

Andrzej.

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