I have used this technique extensively, both on the client side and on the server side. My experience is that it works in most scenarios (but then I compare its server-side performance with VBScript in ASP pages).
If performance is a problem, it is very important to take XML parsing and XSLT compilation from an operation where possible. If you have a client-side method that uses XSLT to dynamically display an element on the page, make sure it does not load or compile XSLT every time it invokes. If you are using server-side XSLT server, cache the XSLT processor object in any collection supported by your server environment.
You can get significantly better client-side performance by using Javascript and JSON instead of XML and XSLT. I did not appreciate it, but I would bet that the greatest increase in performance is due to the fact that JSON parsing is much less intense than XML parsing.
Robert rossney
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