We are looking at rewriting our current content management system so that it works with the most popular/easiest to use/best templating system.
Our current system is to generate XML and then use XSLT to transform the XML to html, so the current templates are XSLT. The feedback we have had from designers is that XSLT is a horrible language, and we have to agree :). Though it does have some benefits like being executed by most browsers.
Unfortunately the browsers are not supporting XSLT 2.0, along with frameworks like dotNet.
Please let me know your favourite templating systems and why they are better or worse than others.