XDF looks cool! Some of the design choices look pretty inefficient and arbitrary for a data format though, have you thought about rebranding it as a markup language? =] /s
The point being, I think the author is arguing you should use the right tool for the job, and XML not being designed for arbitrary data structures makes it not the right tool.
Just recently people have shown you can build a raytracing engine in SQL, but if someome was arguing we shall call it SQLCycles and ship it in Blender, I'd definitely have a few objections!
This doesn't make any sense. W3C doesn't restrict/define use cases of XML, it defines structure and semantics thereof; using it as-if it is an XDF document is perfectly ok, just like you can use XML data for your DASH stream etc... It's a structure on top of XML structure.