I just found this page on MSDN - a Beta version of an add-in for Visual Studio 2005 that allows it to work with web projects the way it used to in VS2003.
Looking at it, this should make migrating existing ASP.Net 1.1 projects to .Net 2.0 a tad easier by removing all the faffy refactoring that was needed to match the new coding model.
Actually, pretty much every posting on the ASP.Net Developer Centre: Infrastructure page is relevant right now - from the Web Standards support to the new Web Deployment projects. The use of the former is obvious, whilst the latter seems to take the Publish Web Project idea to the next level with web.config customisations and all sorts of goodness.
Time to find a simple ASP.Net 1.1 project and try converting it...