I see nothing wrong with your template and indeed whan I run it as
<xsl:template match="/">
<xsl:call-template name="tokenize.path">
<xsl:with-param name="string" select="'input/xml/../'"/>
<xsl:with-param name="delimiter" select="'/'"/>
</xsl:call-template>
</xsl:template>
$ saxon delim.xsl delim.xsl
<?xml version="1.0"
encoding="utf-8"?><token>input</token><token>xml</token><token>..</token>
which is, I think, the answer you wanted.
David
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