XSLT and Webservice design

[Ran <ran256@gmail.com>]

Hi all,
The search function on the mailing list archive broken, so I made this post anyway.

I m currently designing a webservice for a large company intranet, and it will be extended for internet users in the future.

If I expose a set of database xaction by webservice in a simple xml structure, the webservice consumer app would use a XSLT to request the transformed xml view. This approach will introduce a proxy servlet that forward request, but the system design is more modular and flexible.

Question:
What is the best practice to add XSLT layer to webservice meanwhile not compromise too much of performance.
Is it possible to use XSLT in webservice Return (SOAP or RESTful payload)
Anyway to use xslt with Axis2.

Any opinion would be appreciated.
Thanks,
Ran