1) If you can define joins in the DDL, then YES, it's a RDBMS (given some other characteristics, too, of course) Depends on your definition of RDBMS.
2) I think it's a heckuva lot cheaper. Whether or not it's a heckva lot less powerful, I don't know. Oracle/SQL Server claim to be able to scale from 1 user to hundreds of thousands. MySQL is, I believe, aimed more at the small network/desktop market. I don't think you'd get Amazon.com to switch over from Oracle....
Jim
How many of you believe in telekinesis? Raise my hand...
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