Thanks both of you for your thoughts. So here is how I see it:
The strictness of XML makes for easier validation.
I am sure HTML 4 strict is just as strict as XHTML 1.0?
XHTML gets you is transformation using XSLT to produce other document formats from a given XHTML document
Is this really true? I mean, I have seen som rare cases of XML using XSLT to transform and style the markup, but XHTML? In theory you might be able to use XSLT when serving XHTML as XML, but has anyone`ever seen a public web site using XSLT?
There is a large set of XML processing tools that will work with XHTML, but choke on HTML.
That is true. But what good are those parsers if they can't parse 95% of the web? Perhaps for internal validation or processing I guess.
XHTML requires source code to be valid
Now here is the interesting part. You say "valid", but in fact, serving XHTML to any browser using the MIME type text/html will actually become invalid HTML to the user agent. HTML does not allow ending slash on empty tags, as an example, but the validator won't tell you that.
This is why W3 wrote appendix c as a guideline for XHTML authors so that the browser wouldn't trip when reading XHTML as HTML.
Anyway, the main problem with XHTML is that IE can't render pages with the MIME type application/xml+xhtml. Not even IE8 beta. So no matter how hard you try being strict and XML compliant - the majority of your visitors will see broken HTML. Some authors use a sniffer so they can at least serve the correct MIME type for the user agents that understand it, but it's still a weak minority.
To me it seems like a bad idea to serve one language to the user agent and then lie about it so the user agent thinks it's something else.
Anyway, it's the strict doctype that is the most important of course, no matter what language you choose. But the question remains; what good is XHTML really when building web sites?