Woah... this reeks insecurity. Storing everything as files in the filesystem in what I assume world-writable folders. And this is geared for small sites, which are on shared servers.
XML isn't inherently a bad thing if you do it right. Hell, any SMF page is an XML document in its own right. You can also take XML documents and style them with XSLT files should you want to do so.
But storing everything as files in what would *have* to be world-writable on shared servers >_<
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