I am so pee'd off, People are saying output escaping is evil, dont use it blah blah. I yes I somewhat agree with the points. But what happens when your recieving a xml stream which unfortually you have no control over? Well? Exactly what can you do? Output escaping is very useful in such a situation. But oh no, its evil man.
The feeling is that like html to xhtml there was a transision, and this also needs to happen in this area too. Until we get finer grain controls in xslt 2.0 and xpath 2.0 then I challenge anyone to solve the issue.