What you're seeing is definitely by design.
I originally wrote XML::Simple specifically for reading (and later writing) config files in XML format. It proved to be useful for other simple XML tasks too. However it was never intended to be 'the one and only Perl module you'll ever need for working with XML'.
Personally, for most tasks that involve reading XML, I tend to use XML::LibXML and often it requires less code than XML::Simple would have - even for simple things (yay XPath!). For writing XML, I tend to use the Template Toolkit or HTML::Mason. More advice in the Perl XML FAQ
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