I'm surprised that 1-bit works. Trinary (-1, 0, 1) makes sense, but if you only have 0 and 1, the asymmetry ought to be a problem. Or is multiplying an XOR, so 1x1 = 0?
It still seems like there would be a problem because either [x, y] looks like [0ish, 1ish] and you can't have negative weights, or [x, y] looks like [-1ish, 1ish] and you can't have "don't care" weights. But if you have some redundancy in your neurons I guess this is acceptable because you can just cancel out the positive contribution from a neuron you don't care about with a negative contribution from a very similar neuron that you also don't care about.
Biologically, inhibitory neurons are every bit as important as excitatory ones, so if you squint just right, XOR looks like a neuron's activation being inhibited by another presynaptic neuron.
00 = 1
01 = 0
10 = 0
11 = 1