My only concern is that it would make life harder for nontechie designers. Then again, it might not - the XSL templates would rarely need to change, and it would be easy to build up a "vocabulary" of xml elements so that actual page content might look very simple. The downside of this is that it completely abandons standard html editor tools... which were probably choking on the velocity anyways.
If a project is using non-techie designers, then the best thing for that project would to use an IDE that has its own templating system. Which is the other great thing about Freemarker/Velocity, it works with everything right out of the box.
But, if you've got guys like us doing the HTML too, then XSL is an excellent option. And with development tools like Maven and Forrest floating around, it's often a familiar option as well.
-Ted.
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