Odd that it wouldn't do backward compatible.

I've found when you start doing web design work for clients they are soon looking for Email Marketing pieces of the same quality.
Some use Chimp Mail where you can import HTML, but I can't get Xara to Save As a usable html file.

Sure you can use Photoshop as a Image Map - but that's a work around (not a good one) - not a solution. Plus it really sucks doing a weekly HTML Newsletter every week that way.
Xara is a great program for websites, but it's versatility fall flat when trying to do other HTML Documents used by E mailers and loses a potential large market share.