my $.02,

I used XSLT for a project like this a couple years ago.  It is designed for this kind of thing and is very cool.  However it is likely (as others point out) that there are a lot of features you don't need and furthermore XSLT is (IMO) one of those "wacky" tools that just seems to want to do everything "sideways" - the learning curve is pretty stiff.

Dan
Yup. Using XSLT adds a hell of a lot more 'moving parts' than is  
strictly necessary, and in general working with a database is far far simpler, and more  
easily maintainable by a larger group of people.
    
Yep, and strictly speaking XSL is an overcomplicated beast - too general
for its own good. It can be useful is some specific cases, but within
drupal it is better to stick to php. It is a XML processing instruction
after all, hence the <?php ?>