> its not clear why, say, Chrome or Firefox wouldn't want to take over XSLT/libxml2 development
Very few people actually like XSLT, presumably including the Chrome and Firefox devs. I know XSLT has its share of supporters and that's fine. I'm not here to argue to merits of XSLT – or lack thereof – but we need to be honest about this. They are the proverbial Black Metal fans; everyone else just thinks it's bloody noise.
In addition, many people have grown towards the idea that importing these large C libraries for little used features is just not a good idea in the first place. And that makes libxml and libxslt a dead end. The entire business with XSLT was kicked off by a bunch of security bugs.
Finally, I think a decent case can be made to slim down the "web platform" a bit. If you want XSLT you can still "bring it yourself", but does every browser need to implement it to be "standards compliant"? Seems like a bad trade-off to me. It's a win for newer browsers like Servo or Ladybird if they don't need to worry about XSLT.
So in short, it's not just a problem of "adding some more people to libxml", although obviously that is a problem.