I have to agree somewhat. However XML is a fact of programming life, and while it shouldn't be abused as a configuration language (Spring, JEE, etc), there's sufficient IDE/editor support to make using XML not that painful. You should use the XML config for production code over annotations.
I've never worked on a project where using a logical layout of XML config to declare beans and other services is not understandable quickly (as well as being easily updatable). Contrasted with configuration in code where classes are annotated (which is not the same as a bean def), and where "auto black magic" is applied has lead me to spend a long time digging through code searching for the magic wand.
I've been writing my own DSL for a personal project using Antlr and thus have been influenced by Parr's philosophy that humans shouldn't have to grok XML. I'm not as hardcore as Parr, but I understand the idea. Spring's XML config is fantastic, but should it be written in XML anymore? We've come a long way in tools, Antlr is ubiquitous in the Java world. There's no reason why SpringSource couldn't publish the grammar to allow third party tools to be written to process the Spring DSL. Using tools like Xtext editors could be knocked up to provide the same feature set that the Spring IDE tools provide for editing the XML config (I quite like the autocomplete feature when specifying the class attribute for a bean tag). It would also end the war between XML haters and those who see the value in the text based config. "I hate XML" would no longer be an acceptable answer.