Well there is a couple options...
1) You create a new xml aspect called "webservices" and change the writexml method in the entityfield class to use defaults.
2) i do the same thing as #2 but only i get to enjoy it and i now have to reedit and recompile each time you fix a bug etc in the ORMSupport library.
3) Implement IXmlSerializable explicitly for each entity, copy and modify the entitytoxml and xmltoentity code from entitybase2.cs and implement the readxml and writexml methods myself. This could be done in the "webServiceHelper" template thats generated using my webservice templates.
When i first posted, i hadnt thought of option #3. So option #1 was the only solutioni could think of since in my opinion option #2 isn't an option.
I still think option #1 is best
By using a default you could slim the xml down to
<Fields>
<Id>
<CurrentValue>d3f35b4f-1da4-453e-ae74-17dcbaa923d0</CurrentValue>
</Id>
<PermissionCode>
<CurrentValue>USERGROUP_MODIFY</CurrentValue>
</PermissionCode>
<UserId>
<CurrentValue>19556ba7-4deb-4498-a8ec-098e5b536188</CurrentValue>
</UserId>
<CreatedDate>
<CurrentValue>2005-11-10T14:26:39.1870000-07:00</CurrentValue>
</CreatedDate>
<ModifiedDate>
<CurrentValue>2005-11-10T14:26:39.1870000-07:00</CurrentValue>
</ModifiedDate>
</Fields>
If you modfied a row or two it would look like this
<Fields>
<Id>
<CurrentValue>d3f35b4f-1da4-453e-ae74-17dcbaa923d0</CurrentValue>
</Id>
<PermissionCode>
<CurrentValue>USERGROUP_MODIFY 1234567890</CurrentValue>
<DbValue>USERGROUP_MODIFY</DbValue>
<IsChanged>True</IsChanged>
</PermissionCode>
<UserId>
<CurrentValue>19556ba7-4deb-4498-a8ec-098e5b536188</CurrentValue>
</UserId>
<CreatedDate>
<CurrentValue>2005-11-10T14:26:39.1870000-07:00</CurrentValue>
</CreatedDate>
<ModifiedDate>
<CurrentValue>2005-11-10T14:26:39.1870000-07:00</CurrentValue>
</ModifiedDate>
</Fields>
Granted in this example its not a lot in savings, but say your returning 20 or so entities, it adds up! Especially when you have TEXT fields in the DB that can be very large.