I was thinking, if it's possible to convert the GNO database to another generic database (like SQL) that could be used as a database for ASP or PHP pages.

I'm not a programmer, but I think that people could develop more advanced tools, such as search engines to the report, using a generic database.

What about The XML that is already included? can it be used for that matter?

The XML is there to allow third party tools to access the data.  See related topics Storing Genealogy Tree into an SQL Database and Storing genealogy data with MySQL or other databases.