I am wondering what are some of the advantages when using a XML structure
for the document, as opposed to just using plaintext (with annotations as
well). Most of the formatting features in the rich text editor are
achievable using just plain text with annotations.

It seems that a main advantage is the flexibility to allow arbitrarily
nested structures, such as the one used in conversation model? Though not
supported now, it is conceivable to add support for tables. Are there other
advantages or examples that using just plaintext with annotations clearly
cannot support?

Separately, it seems Google Docs has managed to implement support for lots
of word processing features, including tables and comments. It seems
plausible that the wave document structure could in theory be extended to
support those too?

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