XSLT transformation to strip unnecessary whitespace

<!-- Removes whitespace between element tags (done with <xsl:strip-space>)
     AND normalizes all text nodes
     (i.e. deletes leading and trailing spaces, and comprises \s+ to single spaces) -->
<xsl:stylesheet version="1.0"
 xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
    <xsl:output method="xml" omit-xml-declaration="yes"/>
    <xsl:strip-space elements="*"/>
  <xsl:template match="@*|node()">
    <xsl:copy>
      <xsl:apply-templates select="@*|node()"/>
    </xsl:copy>
  </xsl:template>
  <xsl:template match="text()">
    <xsl:value-of select="normalize-space(.)"/>
  </xsl:template>
</xsl:stylesheet>