Say I wrote a custom gravatar
directive in AngularJS that is bound to an email
property on the scope. The directive would replace this HTML …
While the initial source of the page body (before angular processes an ng-app element) may not adhere to the W3C standards, if you use "replace: true" in directives, custom elements are replaced by a template HTML, which can be valid. So, in this case, you can think about an angular element as just a placeholder that is replaced with the terminal HTML output.