Writing it in Java rather than XSLT is unlikely to give you more than a 10% improvement, and to achieve that you will have to write a lot more code and probably do some performance tuning.
There's no intrinsic difference between the performance of SAX and StAX parsers. Woodstox is probably the fastest conformant parser around, but it's probably only 5% to 10% faster than Apache Xerces on most workloads.
My recommendation would be to use Saxon with the default parser; if that's not fast enough for you, the cheapest way to improve the performance is to buy faster hardware.
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Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer\'s Reference
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