How to Replace Multiple Characters in SQL?

One useful trick in SQL is the ability use @var = function(...) to assign a value. If you have multiple records in your record set, your var is assigned multiple times with side-effects:

declare @badStrings table (item varchar(50))

INSERT INTO @badStrings(item)
SELECT '>' UNION ALL
SELECT '<' UNION ALL
SELECT '(' UNION ALL
SELECT ')' UNION ALL
SELECT '!' UNION ALL
SELECT '?' UNION ALL
SELECT '@'

declare @testString varchar(100), @newString varchar(100)

set @teststring = 'Juliet ro><0zs my s0x()rz!!?!one!@!@!@!'
set @newString = @testString

SELECT @newString = Replace(@newString, item, '') FROM @badStrings

select @newString -- returns 'Juliet ro0zs my s0xrzone'

I would seriously consider making a CLR UDF instead and using regular expressions (both the string and the pattern can be passed in as parameters) to do a complete search and replace for a range of characters. It should easily outperform this SQL UDF.