Thanks on this comprehensive answer, unfortunately, because of my limited knowledge of XML, I had hard time understanding it, so I created [a little project on GitHub](https://github.com/neno--/fun-with-xml) to exercise various options you mentioned. Now I can benefit more from your answer.
Also chapters from [Beginning XML 5th Edition](https://www.amazon.com/Beginning-XML-Joe-Fawcett/dp/1118162137/ref=sr_1_1?ie=UTF8&qid=1509431951&sr=8-1&keywords=beginning+xml) proved very useful.
I posted my own answer to elaborate some more.