> So I would like to hear how one version or the other might benefit either 
> effort.

The only possible benefit in using XSLT 1.0 is maturity: there are more
processors available and the language specification is more stable. Set
against that, the productivity benefits of 2.0 are very substantial, and
apply across a broad range of applications.

Assessment of risk in moving to a new technology is something that each
organisation has to do for itself. I personally find it difficult to
understand why some organisations are much more prepared to take these risks
than others - it seems to have very little to do with any objective
assessment, more on subjective attitudes. There are a lot of organisations
using Saxon 8.x successfully for applications that are definitely
mission-critical; at the same time I can't fault someone who advises against
it on grounds of caution.

Michael Kay
http://www.saxonica.com/