They are supposed to be parsed by the FacesServlet. If they appear unparsed in the retrieved HTML output, then it simply means that the FacesServlet isn't been invoked at all.
Your project's web.xml shows that it's been mapped on an URL pattern of *.jsf. So if you change the .xhtml extension in the request URL of the page in the browser's address bar to .jsf, then it'll work.
Better is however to just map the FacesServlet on an URL pattern of *.xhtml directly. This way you never need to fiddle with virtual URLs and the endusers will also never be able to see the raw JSF source code when they purposefully changes the .jsf extension to .xhtml in the request URL.
