I don't know what the higher-ups have to say, but here's what I like about xhtml:
1) It can reduce bandwidth. I've cut as much as 70% of bandwidth burning code from sites with especially large pages.
2) It's extremely quick and easy for me to modify and transfer a template from one site to another.
3) The code itself on any given page is easier to understand, considering there's usually a lot more content and a lot less design/layout controlling effects.
4) An xhmtl template driven dynamic site can load much faster (because there's less input/output to mess with) and it's far more intuitive to design.
5) It can make rss feed content a bit more creative.
