Instead of wondering what we think we know about the role of chemical modifications of DNA (like methylation), I am (at this moment) more interested in learning what bioinformatics methods have been used to study this phenomena. I can imagine having to link DNA sequence databases to other resources, perhaps using protein-DNA interaction software to model the effect of methylation on the complexation, etc.
Therefore: what bioinformatics methods have been performed to study DNA methylation data (or of other chemical modifications)?
Try Down et al's Bayesian deconvolution strategy for immunoprecipitation-based DNA methylome analysis, called Batman
http://www.ncbi.nlm.nih.gov/pubmed/18612301
http://td-blade.gurdon.cam.ac.uk/software/batman/
Well, indeed, I am more interested in what is done with the data after such experiments...