If you've been following this thread (#1, #2), you should read Steve Lott's latest post, "XML - Scripting - SQL - a DSL: which fits the problem better?".
I don't have too much to add to this one, other than that I take some exception to the suggestion that "XSLT isn't fun to write". Neither is Python/Ruby/C++/etc. if you don't have sufficient experience in it. While I can't comment on languages I'm not so familiar with, I can say that for transforming from XML to XML/HTML, XSLT is usually quicker and easier than Java (but definitely not always). I suspect that XSLT would be as quick and easy as Python/Ruby/etc. for most things, for someone who was equally familiar with both.