Martin,

This is very helpful! I've tested it and it seems to work well, with the
exception of CDATA. The output does not include the CDATA for <text>, which
should be <text>This is some text</text>. I put this above
<xsl:apply-templates select="." mode="merge-attributes"> and it seems to
work:
<xsl:value-of select="text()" />

I guess I was fooled by the name of xsl:merge, it seems to be for merging
sequences rather than content within sequences. Documentation is kind of
sparse for it, hopefully some new books for XSLT3 come out soon!

Thanks again,

John.