Why are browsers so fussy about XML? They were more accepting with HTML.

This is deliberate. HTML browsers accept any input, correct or incorrect, and try to make something sensible of it. This error-correction makes browsers very hard to write, especially if all browsers are expected to do the same thing. It has also meant that huge numbers of HTML documents are incorrect, because since they display OK in the browser, the author isn't aware of the errors. This makes it incredibly difficult to write new web user agents since documents claiming to be HTML are often so poor.