templating systems will never be better than XSLT
Never? You can't think of any situation where XSLT isn't the right tool for the job?
it all has to do with language, encoding and xslt scripting /xpath
I don't know exactly what you mean here, but Template::Plugin::XML::LibXML and Template::Plugin::XSLT have been mentioned earlier in this discussion, demonstrating that XPath works in non-XSLT environments. Which language and encoding issues does XSLT deal with better than all other templating systems? The latest version of Template Toolkit (2.14) offers improved Unicode support.
I think the point you make with mobile phones is that XSLT can run on the client side, whereas other templating tools can't. I agree this can help in certain situations, but often I prefer to keep the client side as simple as possible, doing complex work on the server environment. As you mention, client side environments differ considerably in their treatment of the same information.