It's not about which one is better; the HTML still continues to develop, and HTML5 is on its way (for years, though :) ) and delivers some new elements for easier management of new technologies like multimedia in web pages.
On the other hand, XHTML is about strictness of XML, should we say keeping things clean. If you keep your HTML document well-formed (close every opened element, keep things nested in the tree-form), you're getting the best out of XHTML/XML world and can still be using the HTML format, declaring your documents to be HTML, but still keeping them 'clean' (well-formed). I don't think we should declare each of them 'better'; they can co-exist. It's just about us doing our things the right way.