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One old argument against using XSLT held that there was no GUI drag-and-drop XSLT editor. There have been a few valiant attempts to rectify this, but because XSLT is a language for manipulating other (XML) languages, the editors that have seemed to achieve longevity are the ones that recognize this one salient fact: XSLT is about nodes and text and really does not lend itself well to the drag-and-drop paradigm.
I reviewed eXcelon Stylus 1.0 about three years ago, with XSL still in beta. Even then, Stylus demonstrated that a lot of thought had gone into trying to discover the best way of working with this new medium. Today, eXcelon Stylus Studio has gone from being a promising concept to a superb, mature editor for XSLT. It has also extended its capability to other languages, including XML Schema Definition language (XSD) and Java servlets.
The product's main focus is still XSLT, but the interface changes to match the document type being edited, a feature I found a little confusing at first but quite powerful after using the software for a while.
Stylus works primarily as a text editor...