XSLT 2.0 was made a recommendation by the W3C in January, so you'd be incorrect in assuming that it is still in development.
I would always recommend taking any new technology slowly, but XSLT has given significant time to just this issue and has various features for ensuring backward compatibility and easing the upgrade process.
Michael's book also covers all these issues (upgrading) and offers various strategies for doing so. There is a new version out soon which combines both XSLT 2.0 and XPath 2.0 into one book, and updates it to encompass any changes since the original books were published and the recommendation was published.
/- Sam Judson : Wrox Technical Editor -/
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