As you’d expect from the Eclipse foundation, the integration with the Eclipse IDE is very good – in fact much what you’d expect from the Java support.
“Xtend is really not meant to replace Java but to modernize it a bit” says the website: and in some ways it does that. Xtend brings closure to Java; a functioning switch statement; better string support (multiline literals!) and better multiple dispatch.
However it’s all not fun and games. Some of the shorthand introduced is dubious and detracting from meaningful and useful code – I wouldn’t go converting your tens of thousands of lines of code to Xtend in a hurry. However, for weekend projects or hackathons its benefits could be twofold: quicker development time, and the ability to translate the whole lot easily to Java if you need to do anything more complicated later.