The replacement for the FTP service in IIS 7 is almost here, and it's looking better everyday.
Although still only a release candidate (RC0), the new service supports a myriad of new features:
- FTP over SSL
- Membership Providers
- (Significantly better) User folder isolation
- Hostname support (ie. multiple sites on the same port)
The FTP service can also be added as a module to a website, logically binding a website to its FTP site.
In addition, FTP also brings the IIS Managers Service to the table. The IIS Managers Service is basically an IIS specific membership provider that allows creation of users with access to modify an IIS Website or upload to an FTP but without having a windows user counterpart (which means they can't log in to the machine.
I for one am looking forward to the day when IIS7 is commonplace amongst hosting companies.