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Places for improvement
1 sec. start-up time (the parser generated from the RD grammar is >1MB of Perl source code)
Overall performance (lots of Perl evals, switching between Perl and C, and Perl costly function calls)
XSH syntax enhancements
XPath 1.0 optimization in libxml2
Attract more users (xml.com, devx.com, and Linux Magazine articles helped a lot, though)