I'm all for XHTML Strict every time. I strongly believe that HTML should be more like XML. It's not hard to validate it if you know XML and the W3's validator ipoints you on the right track anyway.
XHTML 2.0 is heading toward what the W3 have been aiming for for a long time - the semantic web. The best benefit of XHTML 2.0 for me is that every conformant page on the web will be understandable as content, or an article (for that's what pages are - documents) becuase they all apply to the same standard. You would then be able to construct intepreters (i.e. browsers) that present the content in a completely different manner - there's literally thousands of ideas waiting here.