HTML is not XML and even then few developers today use HTML without some sort of processing involved. HTML is also not a language used for configuration files, so it is really off-topic.
The question is, do people prefer XML configuration over JSON configuration. The answer is that people generally prefer JSON. JSON just maps far better to data types we use in everyday programming. Have you seen some of the common ways of expressing key-value pairs in XML? It's horrible.
> Now try taking a typical HTML document and expressing it in JSON.
That's not the problem anybody is trying to solve here. We're talking about configuration files, not complex documents. But let's say I wanted to solve that problem, the representation would look like this:
Not that bad at all.