There are 2 main problems with XSLT.
The first one is that manipulating strings is a pain. Splitting strings, concatenating them is verbose like hell and difficult to read.
The second one is that it quickly becomes a mess when you use the "priority" attribute to overload functions.
I compare XSLT to regular expressions, with great flexibility but impossible to maintain due to poor readability. To my knowledge, it's impossible to trace.
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