I'm really glad you have raised this question, as non-binary protocols have multiplied in usage many folds since the introduction of XML. Ten years ago, you would see virtually everybody touting their "compliance" with XML based communications. However, this approach, one of several approaches to binary protocols, has many deficiencies.
One of the values, for example, was readability. But readability is important for debugging, when humans should read the transaction. They are very inefficient when compared with binary transfers. This is due to the fact that XML itself is a binary stream, that has to be translated using another layer into textual fragments ("tokens"), and then back into binary with the contained data.
Another value people found was extensibility. But extensibility can be easily maintained if a protocol version number for the binary stream is used at the beginning of the transaction. Instead of sending XML tags, one could send binary indicators. If the version number is an unknown one, then the receiving end can download the "dictionary" of this unknown version. This dictionary could, for example, be an XML file. But downloading the dictionary is a one time operation, instead of every single transaction!
So efficiency could be kept together with extensibility, and very easily! There are a good number of "compiled XML" protocols out there which do just that.
Last, but not least, I have even heard people say that XML is a good way to overcome little-endian and big-endian types of binary systems. For example, Sun computers vs Intel computers. But this is incorrect: if both sides can accept XML (ASCII) in the right way, surely both sides can accept binary in the right way, as XML and ASCII are also transmitted binarically.......
Hope you find this interesting reading!