SyncroSoft has released <Oxygen/> 11.1, $349 payware XML editor written in Java. Oxygen supports XML, XSL, DTDs, XQuery, SVG, Relax NG, Schematron, and the W3C XML Schema Language. According to the announcement:
The visual XML authoring now uses schema information to provide intelligent editing actions that help keep the document valid and provide a better editing experience. The new compact representation of tags and the quick up/down navigation features improve the ergonomics and the usability. <oXygen/> XML Editor can use any XQJ compliant XQuery processor for XQuery transformations, different error levels and external references can be specified for Schematron messages and the XProc support was improved with better editing and execution. The XML format and indent operation can use DTD/schema information to provide better formatting and the find and replace is now XML-aware and can accept XPath filtering to delimit the search scope.
Some of the changes inlcuding schema-aware line wrapping and multiple tags per line sound like they may actually make this a better text editor, though I'll have to try it out to be sure.