Things turn slowly nowadays. Michael Kay on XSLT 2.0 perspectives:
We're going to have to have a second Last Call because of the number of comments received. You can't do a Last Call in much less than four months. The CR phase these days for a complex spec is rarely less than 12 months, because of the requirement to create a test suite and demonstrate interoperable implementations. So I personally think that reaching full Rec status in 2005 is looking unlikely. That's a personal view, not an official W3C one.
The XSLT spec is probably more advanced than others in the family; but very little work has been done yet on the testing side.
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