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LetterSketch is a document authoring tool with which authors can
create documents and extend it with conditions, loops, variables, sub
documents and other ornaments. 

<duck>

Sounds like *the* use case where LyX/LaTeX is beyond competition.

Because it has all this already built-in.

</duck>

Finally this template gets compiled to an internal format and finally
it can be generated on a server in high volume by feeding it data in
XML format.

Data is best fed from a database (LyX/LaTeX has "native" solutions for
this as well). XML was never made for data and it's hopelessly
inefficient (both in terms of volume as well as required processing
bandwidth) as a format for large amounts of data. 

At the customer we created a template/document containing 113 pages,
built up with plain text, various objects like comments and frames,
and dozens of sub-documents and where it takes some 10-20 minutes to
just open the template.

113 pages is not at all a "big" document. Unless that's just the "root"
document.
 
Please find attached the concerning (main) document.

This list doesn't allow attachments.

Sincerely,

Wolfgang

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