Yes XML is human readable but so is comma delimited text and properties files.
XML is bloated, hard to parse, hard to modify in code, plus a ton of other problems that I
Some inherent qualities of XML that make it so popular and useful:
XML represents a tree, and tree-like structures are a very common pattern in programming. This is an evolutionary leap from record-based representations like CSV, made possible by today's cheap computing power and bandwidth.
XML strikes a good balance between human factors (it is plain text, and fairly legible) and computing practicalities (terseness, ease in parsing, expressiveness, extensibility, etc).