Using Twig Templates

[MagePsycho]

I think it's better to use Twig templating based generator.
This way, you can leverage the whole file with just a dynamic placeholder.

[luckyraul]

Escape PHP code in twig ? It's definitely tough task. We prefer to do it generate code, not to template it

[MagePsycho]

Escape PHP code in twig ? It's definitely tough task. We prefer to do it generate code, not to template it

You can use any file and can use twig variable to replace with values.
For example, Magento's etc/module.xml twig template may look like

<?xml version="1.0"?>
<!--
{{ phpdoc_header }}
-->
<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:framework:Module/etc/module.xsd">
    <module name="{{ Vendor }}_{{ Module }}" setup_version="{{ version }}">
        <sequence>
{% if 'payment' in templates %}
            <module name="Magento_Checkout"/>
            <module name="Magento_Sales"/>
            <module name="Magento_Quote"/>
{% endif %}
{% if 'import' in templates %}
            <module name="Magento_ImportExport" />
{% endif %}
        </sequence>
    </module>
</config>

[luckyraul]

How can i deal with merging XML Nodes from different entities?

[MagePsycho]

How can i deal with merging XML Nodes from different entities?

Why you need that? That Magento system will do it.