(I pick absolute because content can end up in an RSS feed and RSS feeds work better with absolute URLs)
No if you add the xml:base attribute.
I recently discovered the same issue with RSS feeds in Drupal. If I don't use absolute links for images for instance, the images will not show up in the feeds. I would rather use relative links. If xml:base is the solution, then this is a fix that should be added to the core Drupal code which handles RSS for <front> and taxonomy.
How do others deal with this right now? Do you use absolute links for images throughout your site or use relative and know that the image will be broken in RSS parsers?
Thanks, Mark