When I’m coding away I’d often have to insert an XML string into a database field via SQL Management Studio. Initially I was just using notepad and cleaning up the white space. This gave me the irrates fast so I wrote a little WinForms app to strip the white space using regex then copy the result to the clipboard. All the cutting and pasting soon frustrated me too. So I ported the app to the console app you see below and run it from the right mouse menu.
i.e. right mouse on any XML document and select the "Remove White Space" menu item and the white space will be removed and the results copied to the clipboard. So I simply right mouse and on the document then paste into the database field.