At 10.1 yes it is possible to import an xml workspace document. I am seeing the dialog when right clicking on an .sde connection in my database connections. Not sure why you would not see that, possibly permissions/privileges.
Also you could a search for the tool inside ArcCatalog and use the geoprocessing tool for Import XMl Workspace Document.
Here is where the tool is located : Data Management Tools -> Distributed Geodatabase -> Import XML Workspace Document.