I’d say yes, it’s a bad idea. In some rare cases, XSLT might be the right tool. This would e.g. be the case if you have an XML document (string) that you want to transform into another XML document (string) using some easy rules. Then I wouldn’t transform it to documents, do the transformation, and transform back to XML. Doing a direct XSL is easier in this case.
But as a general engine for data transformation, I’d prefer the flow language anytime. It’s built in into wM, it’s natural there. Flow is a general purpose programming language while XSLT is not. General programming in XSLT is a pane.
You are right that flow code is not easy to diff and to merge. This is a major drawback, and I fail to understand why the flow code isn’t stored in some “predictable” way so that small changes in the code result in small changes in the flow.xml file.
But even then, if you have coding discipline, some coding rules, and maybe some assisting tools (SCA, unit tests, etc.), it’s quite possible to do programming with flow code at a modern level of software engineering.
It’s just so that the vendor does not provide the tools to do all of this, and many companies (including the one I work for) have created their own tools and methods. Which they don’t share with the world for some obvious reasons. There is no such worldwide community like e.g. for Java.
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