There is not really a correct answer here imo. Neither system is "better" than the other in reality - they both do the same job in the end, which is allow you to generate code documentation.
The final output can be formatted in exactly the same way for each of them, and they do have pretty much the same functionality in terms of what labels etc they support, so its really down to personal choice here.
Personally I find XML comments to be much more human readable, much more logical and just plain easy to use - but that is with the added advantage of having visual studio automatically generate stubs for me to just fill in, and the excellent support it has for collapsing them so they don't take up lots of space on the screen. I am sure that someone who comes from a background editing in VI or some_other_IDE will have a different opinion, but there is no real advantage to either.
So I would say that really it depends on what IDE you are using and what you and your team are used to using.
Now if you are asking why Microsoft have chosen to integrate so tightly with XML commenting within Visual Studio, that is a different question. Most probably it is due to the facts that: it would be simpler for them to implement within VS (as they can re-use existing code to generate/read the comments and build intellisense etc), they have a trend for sticking to "standards" anyway (be it their own or industry ones), and also licensing reasons as mentioned by Jeff.
Just to add that the product Microsoft is using within VS is called "Sandcastle", which is an in-house XML doc generation tool. It has its own wiki page @ http://docproject.codeplex.com/Wikipage