I'd rather ask: why on earth would anyone suffer through XSLT if they had Haskell? HaXml is actually a very respectable parser and toolkit.Also I think you're mixing up two issues. TagSoup and BeautifulSoup were both designed for parsing what passes for HTML on the Web, and not for XML. With all respect to Mike Kay, his tools won't directly help you there.
Sure people do use them for processing XML sometimes, and not just XHTML. Well, people also use regexen for doing so. I personally use grep on XML almost as much as I do the compliant parsers that I myself have worked on.
Well that comes back to what I always come back to on this list. XML is to complicated, and that complication necessarily manifests itself in fully compliant tools. Developers have come to hate XML and just want to crowbar, chisel and scrape it as quickly as possible into a structure that they can actually understand, using a tool that seems to hate XML as much as they do.
We can complain all we want about the poor professional state of developers as we understand it, but it's the raw reality, and we can either make it easier for them to do the right thing, or keep on tsk tsking at them from here.