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The first niche is programming with XML. XQuery makes programming with 
XML easier because it directly supports the things that matter most for 
XML - construction, path expressions, and restructuring with FLWOR. This 
is true of XSLT too, but (1) XSLT has not been successfully optimized 
for large data stores, (2) some programmers don't wrap their brains 
around XSLT, either because of the syntax or the heavily recursive 
programming idioms.

The second niche is data integration, where the ability to translate 
XQuery into other systems is very important.

XSLT is the Lisp of native XML programming. XQuery is ... more like a 
SQL with report writing capabilities.

Jonathan

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