> The other benefit of course is that you can trivially sort the data
> without screwing it up. (Excel makes it very easy to accidentally sort
> one column only, muddling up all the data.)

Err, you did turn on filtering first on your table (select the header 
cells and click Data->Filter)?  This makes sorting and filtering a 
no-brainer and AFAIK prevents people from sorting the data incorrectly.

> Don't even get me started on how difficult it is to
> cross-reference data in a spreadsheet.

If you need to cross-reference beyond simple drop-down selection lists 
then you're probably beyond what Excel can easily offer as a simple 
database.

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