I have created a programming language that is written in XML. With a decent editor (I use oxygen xml) and a good schema (I use Relax NG) there is almost no way to make syntax errors and typing is a breeze (auto completion). With schematron you can even make clever (semantic) error checking before compile time. So it always depends on the case.
I don't doubt that you could write a DSL that someone would be productive with. But then you'd need to keep a psychiatrist on staff to make sure the people using it don't go crazy. If we're talking about a full on, general purpose language, then you might as well start them on Thorazine ahead of time. Otherwise, you risk a programmer going postal. In short, don't risk your or your coworkers' safety. Just say no to XM…
Take for example XSLT. You are saying that all XSLT programmers are mad?