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With this change: http://html5.org/tools/web-apps-tracker?from=5526&to=5527 HTML5 now allows xml:space everywhere, thus relaxes the requiremens in XHTML 1.0 on valid documents. This should be mentioned in the differences document.
EDITOR'S RESPONSE: This is an Editor's Response to your comment. If you are satisfied with this response, please change the state of this bug to CLOSED. If you have additional information and would like the editor to reconsider, please reopen this bug. If you would like to escalate the issue to the full HTML Working Group, please add the TrackerRequest keyword to this bug, and suggest title and text for the tracker issue; or you may create a tracker issue yourself, if you are able to do so. For more details, see this document: http://dev.w3.org/html5/decision-policy/decision-policy.html Status: Accepted Change Description: added "Additionally, XHTML 1.0 only allowed xml:space on some elements, which is now allowed on all elements." Rationale: Concurred with reporter's comments.
(also added "in XHTML documents" for clarity)