Does it make sense to use SQL Server Compact for a desktop application?
Microsoft SQL Server Compact 4.0 is a free, embedded database that software developers can use for building ASP.NET websites and Windows desktop applications.
In February 2013, Microsoft announced that SQL Server Compact Edition had been deprecated. Although no new versions or updates are planned, Microsoft will continue to support SQL Compact through their standard lifecycle support policy. Extended support for SQL Server Compact 4.0 ended on July 13, 2021.
(1) Open SQL Server Management Studio, or if it's running select File -> Connect Object Explorer... (2) In the Connect to Server dialog change Server type to SQL Server Compact Edition (3) From the Database file dropdown select <Browse for more...> (4) Open your SDF file.
I certainly would (and do). SQL Compact (SQLCE) has a distinct advantage in some scenarios. Now it's in no way meant to be a replacement for SQL Server. It doesn't scale, it isn't made to run thousands of concurrent connections, it's not designed for reporting services, etc, etc.
But it has a tiny footprint. Installing is a matter of just copying over DLLs. Backing it up is a simple file copy. And it can be wicked fast for storage and retrieval if you're using table direct or BCP. Oh, and it's free. If you just need a local data store for an app, SQL Server is a pain to deploy and configure. SQLCE is simple. Plus it can play in the same sandbox as a full SQL Server as a replication subscriber (which most other small DBs can't).
Edit: Forgot to answer your specific questions:
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