We're in the early stages of deploying a new RESTful stack, and versioning is a hot topic (along with getting people out of the RPC mindset and into a resource-based paradigm). While version bumps should be much less common, we'll probably end up doing something similar to our cascading transformations. Essentially, the old version becomes a consumer of the new version, and as long as the new version continues to hold to its API contract, everything should work with minimal fuss. Of course, that's assuming that we don't change the behavior of a service in ways that aren't explicitly defined in the API contract...