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XSLT and SOAP are not possible without namespaces. Sure, you could leave namespaces out, but there would be a theoretical risk of collision between the non-XSLT (non-SOAP) elements and XSLT (SOAP) elements. Specifications should not leave such holes.
Personally, I'm not at all convinced that you need namespaces for local documents -- that is, ones that never leave your application sitting on your desktop. But the minute they go somewhere else -- another desktop, another department, another company -- you should start worrying, if only because the cost of fixing the problem later is much higher than adding namespaces now.
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