What should I do webapp or webservice + webapp?

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It's been recommended to me to use a webservice and XML for the data
manipulation layer for web applications in .NET 1.1. I was thinking I
could use the web service to extend the database interface to a Smart
Phone/Treo solution eventually.

I would like to create our apps in the most current development
environment but, do I abandon the webservice-->Dataset--> XML
-->Http-->XML --> dataset -->gridview methodology? Is there a better
way? Or do I create an asp.net webapp that is all inclusive of data
connectivity and UI? It seems that's the direction MS has steered me
in 2.0 using datasources and gridview.

Tell me what I should do.

Thanks,
Jamie

.

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