using NUL in scripts

[Mike Frysinger]

is it even possible to utilize NUL in scripts ?  or does bash just strip it 
out ?  for example, trying to work with binary data:
foo=$(<binary-file)
echo "${foo}" > new-file
the "new-file" will be exactly "binary-file" if all NUL bytes are stripped out

or perhaps i want to take an arg list, append a string, and run a command on 
it ... but i cant pass it straight as it may be too large, so i need to xargs 
it ... so i'd do something like:
echo ${@/%.moo/.foo$'\000'} | xargs -0 rm -f
but this doesnt work since the $'\000' gets stripped
-mike

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