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Crystal Reports, JasperReports and many other report writers are conventionally used in software development practices when it comes to producing printer-ready reports.

It would appear that a LaTeX based template engine could be successfully used instead to produce such reports. This could be especially convenient for software houses well familiar with LaTeX (e.g. where it is used to produce technical and other documentation).

Had anyone heard of any effort in this direction? Some FOSS project?

01es
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With knitr there is a new player on the field which tries to overcome a few of Sweave's limitations. Find more information at https://github.com/yihui/knitr

Uwe Ziegenhagen
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I frequently use Latex alongside R and Sweave to generate reports in data mining and ETL type projects. It works well and produces professional looking output.