I bought an XT in a kit with the EF-S 17-85mm. If I figure the body is around $850-$900, then I paid between $300-$400 for the lens, (yes, it was a good deal.) I had high hopes that this would be an ideal compromise for me, but I'm beginning to have some doubts.
The first bit of disillusionment came as I mounted the lens and moved it through the zoom range. From 60mm down to 17mm there are 4 or 5 places where binding can be felt. Not smooth! I expected better.
Realizing I'd have to send it back to Canon for adjustment or replacement, I bought a EF-S 18-55mm MkII "kit" lens on ebay to use in the meantime. Optically, I can't see much difference, but I haven't done any critical comparisons. With my now shaky hands, I miss the IS in a few situations which was one of my main reasons for wanting it in the first place.
One thing I don't miss is all the extra weight - the 17-85mm is double the weight of the 18-55mm at about 17oz. The "feel" of the 18-55mm on the XT body is MUCH better than the 17-85mm lens.
I do a lot of semi-candid stuff in public places, "street" photography, and the better handling makes a big difference. It's a matter of balance - My Nikon FTn with 50mm weighs in at a little over 2 lbs. with most of the weight in the body. The XT 17-85mm combination shifts the weight up front which with the small XT body feels awkward while the FTn does not nor does the XT with the 18-55mm lens.
