XSL can be seen as doing two things:
- 
transform/generate -> XSLT
 
- 
render -> XSL (the formatting objects)
 
The example again: XSLT +
XSL
<x:template match="blockquote">
  <fo:inline-sequence font-weight="bold" color="#333">
    <x:apply-templates select="//h1" />
  </fo:inline-sequence>
</x:template>