(you can of course use XSLT in AxKit :-)
And don't forget that, with AxKit, you can use Apache::ASP, Mason, or any Apache::Filter-aware handler to provide content for AxKit to transform and TT2 as a transformational language. Oh, and there's XPathScript, too, which, although its only one part of AxKit, is really a novel "templating/trasformation" language all on its own...
Why choose one when you can have 'em all? :-)
-kip
