This allows the creation of a directed linked graph, where objects refer
to other objects, and the links can have attributes of their own.  In
your case it might look like this:
<BOOK ID="The Call of the Wild">
   <AUTHOR UNIT="Jack London"/>
</BOOK>
Which allows you to define something like this:
<PERSON ID="Jack London">
   <FIRST>Jack</FIRST>
   <LAST>London</LAST>
   <PHONE>(206) 555-3423</PHONE>
   <WORK UNIT="The Call of the Wild"/>
   <WORK UNIT="Love those Wolves"/>
</PERSON>
Where the ID attributes are unique tokens for each object, and the UNIT
attributes point to other objects.  In this case we see that Jack London
is a PERSON, who in the context of the book "The Call of the Wild" is an
AUTHOR.  Jack may appear in other objects, in other contexts, like:
<STORE ID="Wal-Mart">
   <CUSTOMER UNIT="Jack London"/>
....
I think RDF will eventually address this.  Anyway, that's my personal
preference.
Rich