One of the common use-cases of XML literals is creating HTML. However, HTML entities cannot be used in XML literals since LINQ to XML directly supports only the Data type definitions (DTD) defined in the XML 1.0 spec. You can read more about it here.
The implicit line continuation feature in Visual Basic 2010 provided an opportunity to improve the code editing experience in XML literals embedded expressions. In Visual Studio 2008, pressing Enter inside an embedded expression would result in the cursor being positioned to the left of the end embedded expression tag.