Thanks a lot, it's looks reasonable at first glance and I'll take a closer look as soon as I get to it. If it works well, it should make it into 2.3.

Is there a roadmap date for 2.3 release?
 
Could you add a couple of tests to src/lxml/tests/test_xslt.py? That would help in making sure that it keeps working as expected even if I find that I need to rework the patch.

I've added tests, I've also renamed variables to fit your code better and added possibility to evaluate extension element's content directly to _AppendOnlyElementProxy as well as to _Element. It looks like I'm satisfied with the code now. I wonder what will you say about it.
 
Also, it's best to send patches as a readable attachment rather than inline. Mail programs tend to reformat text and it's easy to loose empty trailing lines etc.

The patch is attached. Can't wait to see it in trunk :)
 
Thanks for pulling this out!

And thank you for making very nice and useful thing!

--
Marat