IMHO, adding XML certainly will not hurt you. Using XML will, most likely, make your life easier. Especially in the vent of adding a new databit like "compress".

For example, you have a piece of markup that looks like this (I'm making this up as I go along):

<server type="1">
  <log loc="D:\logs\server.log" app="CF_MX" />
  <features>
    <compress enabled="true" />
    <images strip-on-log="false" />
  </features>
  <start-time>[ARIBTRARY TIME STAMP]</start-time>
</server>
[download]

With split() and flat files, you would have to change the application if you wanted to add new functionality. However, with XML you can just add a new tag. Your code can/should be written to ignore tags it doesn't understand. You can gain a great deal of flexibility this way.

Say, for some reason, you have this set-up in place on all your servers, and the log creating engine is able to be maintained and kept up to date on all the boxes. BUT, on box XYZ, you cannot update the logfile parser (gremlins have begun nesting in the code). With XML logfiles, you don't need to be as concerned that the parser on XYZ can't read the new and improved XML, it just won't pay any attention to it. It's kinda like putting stupid things in your HTML like <p lemon="fruit">, it might look dumb, but the parser won't pay any attention.

If you make something idiot-proof, eventually someone will make a better idiot.
I am that better idiot.