XML is somewhat subjective in terms of design - I don't think there are exact guidelines for how the elements and attributes should be laid out, but I tend to go with using elements to represent 'things' and attributes to represent singular attributes/properties of them.
In terms of the coordinates example either would be perfectly acceptable, but my inclination would be to go with <coordinate x="" y=""/> because it is somewhat more terse, and makes the document a little more readable if you have many of them.
The most important thing, though, is the namespace of the schema. Make sure that (a) you have one, and (b) you have a version in there so you can change things in the future and issue a new version. Versions may be either dates or numbers, e.g.
http://company.com/2008/12/something/somethingelse/
urn:company-com:2008-12:something:somethingelse
http://company.com/v1/something/somethingelse/
urn:company-com:v1:something:somethingelse