Contract-First SOA with WCF

This question is more of a probe to discover what people are doing in the community, in practical situations, than a specifically targeted question. I have searched pretty broadly about this, and while I have found a lot of bloggers advocating contract-first service design and some comments backing them up, I have yet to find much practical information about implementing contract-first with WCF, the pros and cons of doing so in a real-world environment, etc. I have recently done some extensive research into SOA, primarily through Thomas Erl's books, and one of the primary concepts he advocates is contract-first design.

My questions are as follows:

1. How do you approach contract-first service design with .NET and WCF?
2. Are there other tools besides svcutil that can generate both client and service from contract? (Anything that integrates with VS would be ideal)
3. What real-world pros have you encountered with contract-first design and wCF?
4. What real-world cons have you encountered with contract-first design and WCF?

One of the major problems with contract-first development seems to be tooling. Svcutil is the only thing I have found that can generate service code from a contract, and it has some pretty poor output. Its single-file, chock full of attributes and code-generation artifacts, and it basically needs to be regenerated and replaced any time the contract is updated. I would prefer a better approach, preferably something that doesn't require regen-replace. I'm fine with manually creating the service-side contract even, assuming it is practical in a real-world scenario.

EDIT:

While WCSF solved my immediate needs, learning about Protocol Buffers and Service Factory are both intriguing tools that I am sure will help me in the future.

WSCF provides a contract-first tool with VS integration. Checkitout. (free)

As of July 6th, there's a binary release with a setup program.