The serialization spec for method="xml", indent="yes"
says that whitespace should not be added in a place
where whitespace stripping would not remove it. It also
gives special treatment to an xsl:text element
appearing in the result tree.
The implication is that Saxon should suppress
indentation for (a) an xsl:text element, and (b) any
element that specifies xml:space="preserve". Saxon
makes no attempt to do this, it indents unconditionally.
Applies to 6.5.2, 7.3.1, and all earlier releases.