(X)HTML can be pretty readable, if it's formatted well. If it wasn't, JSX wouldn't be a thing.
I think it's not so much about readability but about complexity. XML is meant to represent complex data, like complex rich text or nested vector graphics. That makes XML complex, conceptually, visually, and in implementation. If you use it to represent something that could have been a csv you're going to have a bad time (as everyone had in the 90s).