W3C recommends putting a space before the closing tag in XHTML, because this would give a better backwards compability with some browsers, e.g. write
I would say no... It was to support Netscape 4, as bobince said, and I believe the number of such browsers being really in use is very near zero, fortunately!
Unlike what Vincent said, I don't think IE4 has such issue. And I believe we can class IE3/4/5/5.5 as dead anyway (at least gone of Web statistics), and waiting impatiently to do the same for IE6 too! :-D
Silly thing, this has influenced so many people that sometime I see x="foo" />
even pure XML files!