Currently, most applications of XSL center on XSLT, the transformation part. And they mainly use XSLT to convert XML documents to HTML for web publishing.
For example, I use XSLT to publish this newsletter (http://www.pineapplesoft.com/newsletter/archive/19990801_xml.html): I write the newsletter in XML and I have two style sheets to automatically generate the email and web page.
In fact, there are no built-in limits to what you can do with XSL. Bear in mind the style sheet creates a brand new HTML document. This document can include any HTML tag, including browser-specific tags like <MARQUEE>. And, yes, it can include CSS, scripts, , tables or just about anything else!