It seems like I have found a solution that brings down compile time to 
something reasonable (~3 mins). From 1.5h (not 1.30 as I initially wrote :)) 
to 3 mins!!!

I have downloaded xhtml.ent and added the file to User Specified Entries in 
Eclipse's XML Catalog.

Could somebody explain why this can effect compile time this much?

I think this is the same bug as described here 
- http://code.google.com/p/google-web-toolkit/issues/detail?id=5773 

Marko

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