Saving settings XML -> Database

Today I was asked to write a unit and save it's settings into an XML file (TXmlDocument). Then the XML file is to be stored in a varchar(MAX) field in SQL Server.

All this is done from within Delphi 7.

I can see the advantage of not having to add additional fields to the table to store the settings.

However, I though XML was used primarily to facilitate the transport of data. Furthermore do we really need another layer to get to the database if we are running local?

Reading from the database is done in a similar manner - read into a TXmlDocument and then process.

Not all units use this approach. It is used mainly for storing/reading 3rd party settings.

Now my question is whether this is standard practice and whether it is advised at all?

Thanks for your valuable input.