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It really depends upon the content of the list. For example, I have a site that enumerates comic strips. The strips are divided by Story, Chapter and Date.
A typical tree might look like this:
All: Clan of the Cats
11: Melpomene
11:2: The Faith
2000-04-16
Strip #294
2000-04-17
Strip #295
On the other hand, using <dl> purely for the artistic effect is pointless; there's no guarantee that the list will be indented at all in a particular browser. Indeed, on my site I specifically outline the indentation to be used (using CSS) because the most common browsers have a radically different interpretation of list indentation.
So in summary, it's OK if your list has some kind of meaningful hierachical structure, but don't think that gives you any guarantee about how it's going to look.
Another application of DL, for example, is for marking up dialogues, with each DT naming a speaker, and each DD containing his or her words.
search engines won't care but won't give it the extra weight that h* tags would have.
Adam
because of it's nice formatting
It's been a while since I tested this, but I remember that there's a lot of variance cross-browser for how definition lists are displayed. That situation was generated by an absence of particulars in the W3C rendering recommendations for user agents.
I assume you are refering to IE's nice default formatting. As you know, that handles a large percentage of your visitors. If you do go down this road, know that there may well be some cross-browser and cross-OS surprises.
Bear in mind that without CSS you have next to no control over rendering, and even with CSS rendering is somewhat implementation. Rather than conducting an exercise in head-burying, might I suggest that learning CSS would improve your options in future?
I plan to basically build one site and then use that as a template for many. It seems like a good idea to build your site so that even without CSS it looks good. Then if a user's browser doesn't support CSS or has spotty support it will degrade to the plain HTML in varying degrees. That's how I'm hoping it works. Will it happen that way?