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would be really really cool if someone could make a small script to convert these into a format understandable by dict://

I've created a first step towards that. A general purpose tool for extracting the data back into XML.

I bet it'd be pretty easy to make an awk script to convert XML into something like dictfmt(1)'s -j Jargon File format text.

Maybe. Don't know. I've never really used dictfmt or the like.

What's it good for?

once you get the dictd server set up, all you need to do to get a definition is run curl. google 'curl dict' for some stuff.