Interesting to see this hit big companies like google. The problem, I think, stems from the idea that most people treat XML parsers as a "black box" and don't enquire too closely as to all the functionality that they support. Reading the spec. which led to the implementations, can often reveal interesting things, like support for external entities..
When I first noticed that HTML doctypes have URLs in them, I inquisitively tried accessing them, and it brought up a lot of questions in my mind about why it was designed that way, what would happen if the URLs no longer existed, etc. Such an explicit external dependency just didn't feel right to me. Unfortunately most people either don't notice or seem to ignore these things...
Interestingly enough, not all XML parsers support external entities; the first one to come to mind is this: http://tibleiz.net/asm-xml/introduction.html