Your trying to hard :-)
just <xsl:value-of select="E1" will do.

From: mus47@xxxxxxxx

I have to extract a text contained in a xml element and all its descendants.
<E1> text1 <E2> text2 </E2> text3 </E1>
using
<xsl:for-each select="E1|E1//*">
<xsl:apply-templates select="text()"/>
</xsl:for-each>
gives:
text1 text3 text2
and
<xsl:for-each select="E1|E1//*">
<xsl:value-of select="text()"/>
</xsl:for-each>
gives:
text1 text2

I want to have something like:
text1 text2 text3