I am very sorry to hear about your frustration.
Unfortunately, on our side it means twice as much efforts for designing and implementing the same level of functionality for both .NET 1.1 and .NET 2.0 because we are relying on .NET 2.0 specific features for our reporting tool and they can not be easily ported to previous versions of the framework. Constrained by our aggressive roadmap we can not afford to cut on 2.0 features in order to maintain a 1.1 version -- also the majority of customers have stated their requirements for 2.0 only. Believe me, that was not an easy decision to make but we have taken it in order to serve most of the community better and faster.
Most of the feedback we have received so far is that migrating to a new reporting solution is already a major change and so the problem in using .NET 2.0 is not that big (moreover it is fully backwards compatible with .NET 1.1). I sincerely hope that 2.0 version will work out fine for you.
Please, accept our apologies for the inconvenience. If we do reconsider this decision I will personally follow up with you.