It does not just collapse the whitespace, it does not even insert the
node into its XML DOM unless said node is within the scope of an
@xml:space="preserve" (which mandates that the parser leaves all text
unmolested).
Added that in the foreach test case (which makes use of significant
whitespace), but we may have to add it to templates as well in some
cases (since whitespace is significant in HTML)..
bzr revid: xmo@openerp.com-20120118112538-ju4kxfz154qm8yny
Xavier Morel