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I love SQLX. You would use SQLX when you need to tightly integrate SQL commands and XML fragments.
The other tool I use when I'm dealing just with XML is DBMS_XMLQuery. This package, along with DBMS_XMLSave, is for getting XML data out of the database if you want to later put it back in.
If you are using Java, you would probably want to use XSU and the Java API.
And finally, there is XML DB and WebDAV. If you have users wanting to access XML data directly, possibly even for updating it using MS-Windows tools like Excel, choose WebDAV.
I work primarily with 10g now and I would recommend you to upgrade if you can.
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