You are looking at the HTML representation of the XML format.
HTML is good for debugging, but is unsuitable for application use.
Specify the format parameter to change the output format.
To see the non HTML representation of the XML format, set format=xml.
See the complete documentation, or API help for more information. 
<?xml version="1.0"?>
<api>
  <query-continue>
    <alltransclusions gatcontinue="Documentation/docspace" />
  </query-continue>
  <query>
    <pages>
      <page ns="10" title="Template:Cat handler" missing="" />
      <page ns="10" title="Template:Doc" missing="" />
      <page pageid="656" ns="10" title="Template:Being Flags" />
      <page pageid="655" ns="10" title="Template:Being Flags (0.9.9.7)" />
      <page pageid="687" ns="10" title="Template:Cell Flags" />
      <page pageid="686" ns="10" title="Template:Cell Flags (0.9.9.7)" />
      <page pageid="419" ns="10" title="Template:Clear" />
      <page pageid="659" ns="10" title="Template:Color" />
      <page pageid="591" ns="10" title="Template:Color (0.9.9.7)" />
      <page pageid="420" ns="10" title="Template:Documentation" />
    </pages>
  </query>
</api>