As for what you can do with XSLT, well quite a lot. For instance we were converting XML DB models into a perl object model. This involved converting XML into code, which required the use of conditional blocks, transformation, selective presentation etc. Not sure what a 'style sheet' is in XML, if its not XSLT, but XSLT has capabilities far beyond what CSS gives you in HTML. Bear in mind though that XSLT is a bit nasty in terms of syntax but thats why you use a WYSIWIG tool to write it...
If you want to play around with a WYSIWIG XML/XSLT tool on a W32 platform then have a look at XML Stylus Studio its available free for trial. We found it usefull enough at work to buy a few dev seats worth. Other than that sablotron is a good open source command line etc version of the same thing.
I'd be interested in how you get on with this, maybe a follow up post letting us know how you played it? Anyway, HTH
Oops, last thought, I very seriously doubt that a Perl-Native XSLT implementation would be superior, my guess is it would be slow as hell. Use sablotron, but control it from perl. Sablotron has some new documentation on using it with Perl, I havent looked at it in detail but its here
Yves / DeMerphq
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