If the XML looks correct and you're in a Graphical Layout mode then it's probably using a later version of the Android rendering layout that doesn't support EditText.
In Eclipse and Android Studio there should be a green Android icon with what API version is rendering the layout. Make sure you're using a non W or Wearable API as Android W APIs don't support the EditText element. (EditText is most likely not supported because virtual keyboard space is limited on those devices).
The rendered preview should support EditText in any API 4.X version without a trailing W.