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On the client-side, this is mainly dependant on how browsers will implement XML.The Extensible Stylesheet Language, which is to XML what CSS is to HTML, also provides scripting and transformation capabilities equal to and more powerful than what is offered today in JavaScript.
If you want to learn more about XSL, you can read the article: XSL - What's in it for us?
On the server-side we are already seeing many applications that is using XML implemented in Java. In these applications, Java is used for processing and XML for the data.