...but oddly, if I use copy-of, it appears to treat the result tree
fragment as a node set without the need for exsl:node-set, because it
ends up applying templates to the subelement content rather than
passing it unchanged as I would have expected with copy-of. In other
words, subelements in $content do get transformed correctly. Strange.
do you mean you've gone
<xsl:variable name="foo">
<xsl:copy-of select="khhlh"/>
</xsl:variable>
<xsl:apply-templates select="$foo"/a/b"/>
and it worked rather than generate an error?
If so, you either have a buggy processor or a processor implementing the
orphaned xslt 1.1 draft (eg saxon 6) or the new xslt2 draft (eg saxon 7)
David
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