Efficient XML Interchange - EXI

In almost all of the EAI projects that I've worked with, I have noticed one problem related to performance - the growth of message size when wrapped in XML. This is of concern especially when the data being transferred has no semantic meaning, binary data, database records being synchronized and similar examples come to mind. People have resorted to actions such as removing the XML wrapping, using EDI internally(!), switching to FTP for data transfer and even upgrading hardware servers (due to stubborn EAI evangelists with substantial clout) to overcome this. The affected parties can now take heart from the fact that the W3C has setup a working group called EXI to develop a format that improves the performance while transferring data in XML. (news through David Linthicum's Real World SOA blog). Of specific interest to me is the following point in the charter,

"Fulfill the design goals of XML with the following exceptions:

1. The interchange format must be compatible with the XML Information Set instead of being “compatible with SGML” (XML goal 3);
2. For performance reasons, the format is not required to be “human–legible and reasonably clear” (XML goal 6); ..."
   

Point 1 related to XML goal 3 will hopefully shed off some baggage that the present XML Info set is being burdened with. Point 2 should be the differentiator for this format and deal the killer blow. Not sure how this point will be taken care though, with entities probably?