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I use both databases regularly but I think MSSQL is far more sophisticated and powerful and I would definitely be more inclined to use it over MYSQL if there was no cost difference.
Theres a limit of 1GB/1 proc unklike MSDE, which stops it being used for busy ecommerce sites so I dont think its competing with MySQL at all.
SQL Agent and programmable DTS are not included either making hard to use for a business system.
IMO its aimed at application developers just like MSDE was.