You're correct in that "M" doesn't currently support an XML data type. I stress the "currently" here because the "M" language is still in early stages of development, and the designers are, in fact,aware of this particular feature gap.
That said, it's also important to note that the development of the specification is involving the broader community now, so requests of this nature should go to the "M" Specification Community. More information is on
http://msdn.microsoft.com/en-us/oslo/msc.aspx.
.Kraig