Chess is beaten (machines can play a perfect game) when there are up to 7 pieces on the board.
This might seem like a simple question of compute power, but clever implementation matters. If you can effectively compress your DB, you can use a bigger one!
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I think JSON vs XML is a strange dichotomy. Both can be processed by machines, but they're very different.
I've seen XML work really well for dictionary data. You want to mark up text:
A dog is a domesticated <group>animal</group>.
In other words JSON : CSV :: XML : HTML.
@bamfic Lisp Machines had hardware supported tagged pointers, but I'm not aware of other features.
Nonetheless, the ability to add custom hardware for your programming model worked out really well for them :)
It's hard to get developers to pay for tools. I think the problem is that computers are incredibly general machines.
Once you've worked in programming for a while, it's easy to imagine making a whole range of tools. It's hard to guess the complexity of new domains though.