I jumped straight into XSLT 2.0, loved it and having part lurked on the XSLT list [mulberrytech.com] for a while, recognise that it's much improved over XSLT 1.0. I'm not up to speed well enough to sell it but you can see the major changes in the W3C (draft) recommendation for XSLT 2.0 [w3.org]
The most significant change I guess are its use of groups. There also appear to be a fair number of work arounds cleared up from XSLT 1.0
It's still not clear to me when it's expected to become full recommendation.. I expect then more people will commit to it.