>Also are we going to have anything similar to download the data in XML format..?
No, not at present. We are focused on JSON or RecordSet object. If you want to convert the JSON to XML, there might well be an open source library for that.
>In SPS07 as of now don't we have any other alternative of directly taking that results and displaying in JSON format.
Nothing provided centrally. However it isn't very difficult to write a reusable library for this conversion generically. We did that as an example in the SHINE content. Look at the session.xsjslib in sap.hana.democontent.epm.services. That library is used through out the demos in SHINE to convert from query results to JSON for easy processing and output.