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I like it more as a middle name than a first name, but that's mainly because it just seems to sound more euphonious in the middle name slots with so many first names.
It's somehwat out of style right now but you still can't be sure on hearing the name how old your Michelle is, or what race she is. Everybody knows how to say it and it isn't that hard to spell; there is Michele but it's not like there's a dozen variations floating around.