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I saw this article on the BBC website recently: http://www.bbc.co.uk/news/science-environment-18845282
I think it's a brilliant idea: these are the kinds of GM crops that scientists should be creating. Just imagine if more of our food crops could create symbiotic relationships with nitrogen fixing bacteria: yields would go up, and I really can't think of anything that could go wrong.
I agree with the GM food side - with a point of cauntion. The way GM crops are grown - in exclusive preference of non-GM strains, for example - can have subtle and often unexpected effects on the species itself as well as on the rest of the ecosystem in general.
As for "playing God," no biologist (or scientist, for that matter) would pretend that we or anyone else do that.