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We definitely think that XML is the way to go; in fact, our native file format is a series of XML transactions, compressed for efficiency using the standard gzip library.

Rather than trying to map tasks, projects, contexts, and folders to points in an outline, we use object-appropriate elements like <task>, <project>, <context>, and <folder>, which have subelements like <name>, <note>, and <completed>.

If you'd like to see a nicely formatted XML copy of your current OmniFocus data, try running this command in a Terminal window:

Code:
gzcat "Library/Application Support/OmniFocus/OmniFocus.ofocus"/*.xml | tidy -quiet -xml -utf8 -indent