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> There are features in XSLT that should never be included in XQuery,
> template rules - because they are needed specifically for transformation,
> and because they are impossible to optimize.
Template rules are just syntactic sugar for a recursive function call and a
case statement, both of which XQuery has (doesn't it?). I would be inclined
to nominate some of the axes (almost everything but children and
descendants) as the prime things to exclude from XQuery, both because they
are hard to optimize and hard to statically type in any sort of useful way.