Hey, Len,
I run into this a great deal with Java developers who consume XML that then gets converted to JAXB or some other code serialization. Most have at most a very rudimentary understanding of XML, usually enough to write well-formed XML but not to the point of understanding more than the very basics of XML design, usually have no understanding of XPath or XSLT, and at best VERY rudimentary XSD skills (mostly those features of XSD most likely to break their JAXB serializations).
I'm not sure more XML education works here though. Most times its a language prejudice - they don't want to learn XML because it's not Java, or JavaScript or Ruby, and because it can't easily be broken into "dot" notations. Of course, I also think that the W3C missed a golden opportunity to create an e4x-like standard - an analog to XPath that would have fit more sympathetically into the C++/Java/JS formalisms.
Kurt
Kurt