Catalogablog links to a paper from this year's Dublin Core conference that argues for another way to achieve interoperability between XML schemas beyond using XML/XSLT. They seem to be proposing a web service that can translate and transform across different XML schemas.
"This paper describes a prototype for a Web service that translates between pairs of metadata schemas. Despite a current trend toward encoding in XML and XSLT, we present arguments for a design that features a more distinct separation of syntax from semantics. The result is a system that auomates routine processes, has a well-defined place for human input, and achieves a clean separation of the document data model, the document translations, and the machinery of the application. "

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