The ease of editing isn't a major issue, as pointed out above: there are lot of good (and free for some) XML editors around.
Another potential issue is verbosity, although the answer for large files is to gzip them: in lot of languages, it is nearly transparent.
XML is good in a number of ways: the standard is well defined (you don't have to think how to define charset, how to escape stuff, how to handle special cases (multi-lines, binary, etc.)); it has lot of tools (editors, parsers, XPath, etc.); it is great to exchange data with other tools.
If your needs are very simple, manipulating only Ascii, self-sufficient (only this app will use this format), maybe you can go with another format. But before defining your own, you might take a look at existing text-based formats, like Json, Yaml, even Lua (was a data description language at the origin) or for very simple needs, Windows' ini format or Java's properties.