Back with .Net 1.1 obfuscation was essential: decompiling code was easy, and you could go from assembly, to IL, to C# code and have it compiled again with very little effort.
Now with .Net 3.5 I'm not at all sure. Try decompiling a 3.5 assembly; what you get is a long long way from compiling.
Add the optimisations from 3.5 (far better than 1.1) and the way anonymous types, delegates and so on are handled by reflection (they are a nightmare to recompile). Add lambda expressions, compiler 'magic' like Linq-syntax and var
, and C#2 functions like yield
(which results in new classes with unreadable names). Your decompiled code ends up a long long way from compilable.
A professional team with lots of time could still reverse engineer it back again, but then the same is true of any obfuscated code. What code they got out of that would be unmaintainable and highly likely to be very buggy.
I would recommend key-signing your assemblies (meaning if hackers can recompile one they have to recompile all) but I don't think obfuscation's worth it.