I used it. It's an (ugly) functional programming language that can transform one XML into another - think of it as Lisp for XML processing but even less readable.
It can work great when you have XML you want to present nicely in a browser by transforming it into XHTML while still serving the browser the original XML. One use I had was to show the contents of RSS/Atom feeds as a nice page in a browser.
I have done same thing with sitemap.xml.
I would just do this on the server side. You can even do it statically when generating the XML. In fact until all the stuff about XSLT in browsers appeared recently, I didn't even know that browsers could do it.