Advantages
Xalan-Java fully implements XSL Transformations (XSLT) Version 1.0 and
the XML Path Language (XPath) Version 1.0.
(from the Xalan page)
Disadvantages
It does not implement the XSLT Version 2.0.
Performance
As far as I know the Xalan Processor uses the Document Table Model (DTM)
, which is faster then the Document Object Model (DOM)
. The Xalan XSLT Compiler can translate Styesheets to Translets, which are Java Bytecode and are executed in a runtime envirenoment.
This is IMHO pretty good. If it's not fast enough for your purposes, there is another implementaion of Xalan in C++.
[Source] (in german)
Saxon 9.xx is one of the fastest XSLT processors. Its developer, Dr.
Michael Kay is the Editor of the W3C XSLT WG (Working Group) and thus
he is probable the one that best understands the XSLT Specification
and this shows in Saxon. Any language feature is strictly and
precisely implemented -- usually well ahead of other vendors.
In this answer on SO is a comparison between Xalan 2.7 and Saxon 9. Maybe it is helpful to you.