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Thanks to enhancement 141886, it is now easily possible to let the user change the file extension in the New File wizards. For XML, this would be particularly useful, as it is quite common to have XML files with other extension than .xml. So, the New XML File wizard should not always append the .xml extension. If the user provides their own extension in the file name textfield, it should be honored and the xml extension should not be appended.
Agreed, this would be useful. In general, templates which could plausibly be useful with many different file extensions should do this.