Reading/writing data from Excel worksheet as AutoCAD data source might not be a best solution, but is one of the mostly encountered scenario by us as AutoCAD programmers.
Most CAD app use either COM automation or DAO/ADO/ADO.NET to access data in Excel sheet, which unfortunately tie the CAD app to heavy dependencies: MS Offce/Excel installation, MS Access data engine (not to mention the complexity due to 32/64 bit).
With today's technology, if the CAD app still expects data from Excel sheet, there is no need to depend the app on those dependencies. OpenXML (or some free or not free libraries built on top of it; there are tons of them) can be used easily to access Excel sheet data. The only thing the CAD app project needs to do is to set reference to OpenXml dll, which will goes with your CAD DLL together.