Hey, you're right (as you already knew)!  When I included only the
below template along with one to copy all the elements and attributes,
I got the results I was looking for. Obviously, I included stuff in my
XSL I'm going to have to excise. Oh, what a tangled code we weave ....

        <xsl:template match="text()">
                <xsl:value-of select="normalize-space(.)"/>
                <xsl:value-of select="translate(., '&#xA;&#xD;', '  ')" />
        </xsl:template>

That would duplicate the text node, first with all white space collapsed
and line breaks changed to spaces, then again with linebreaks changed to
spaces (but multiple spaces not collapsed)