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In that same line, the other fallacy about XML I keep hearing is that because one's format is in XML then anybody can process it.

Using XML is definitely a step in the right direction but isn't quite enough in and of itself.
Just like you can't understand another language just because it uses the same alphabet than yours you can't do much, other than some fairly basic manipulation, if all you have is some data in XML.
Publishing an XML schema for your format makes you move one step further in the right direction but it's still not enough. Practically speaking, to process the data you need to be able to fully *understand* it with all its *meaning*. This requires intimate knowledge of what the data represents. Something the technologies we have today hardly let you capture and communicate in a programmatic way, and certainly not XML alone.
That's what the "semantic web" is all about. Whether it will actually deliver on its promise is yet to be seen but it's fair to say that in any case the number of additional technologies to be used (RDF, RDF Schema, OWL, etc.) demonstrates how much is not conveyed via XML alone.

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