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"which is a stateful chat protocol"

You're missing that it's not stateful chat protocol, it's stateful xml protocol (that has, so far, been use mostly for chat).

People are excited that it's fast, stable (some of the implementations anyway), and they don't have to reinvent the wheel.

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"stateful xml protocol" makes as much sense as "stateful ASCII protocol" or "stateful bits protocol".

"Stateful XML protocol" makes complete sense, it just isn't very informative. It describes a protocol that is both stateful and XML-based. Those are independent attributes of a protocol; obviously, you can have both stateful non-XML-based protocols and XML-based stateless protocols, but I don't see why the OP's statement is nonsensical.

Totally agreed. That doesn't negate anything I just said. It's stateful. It's XML. It's a stateful XML protocol (and it happens to also have presence, which I left out, but does make some people's knickers wet).

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