iCal uses open standard formats for easy migration. It's not iCal's fault that Exchange doesn't.
I just got out from under that arrangement and Im in no hurry to go back.
This looks like a case I alluded to earlier. Buyer knows what he "needs," as opposed to what the business requirements say he needs. Thus he'll forego products that are a much better value by coming up with trivial differentiators between the products that only his has.
I call this the cupholder excuse. You're looking to buy a car and you use the number of, size or placement of the cupholders as the deciding factor in your analysis of which car is the best value. And wouldn't you know it, only the car you wanted in the first place has the right cupholder arrangement.
Integration issues are always the other guy's problem. Exchange's calendaring does suffer from some legacy issues, but I'll wager the Schedule + format they're using pre-dates the iCal "open source" standard. But it's Microsoft's fault they're not compatible.
I know what my manager tells me is causing a bottleneck in the organization and needs to be fixed. When does what I "need" to quit getting calls about become a "business requirement"?