Have you taken a look at SimplePie (simplepie.org)? It’s a BSD licensed class. You can use it as a basis for a newsfeed module (RSS and Atom) and a syndication portlet for your own content.
Whats you’re issues with simple xml, its pretty… simple. I do personally prefer to use DOM but thats because i tend to do some advance parsing with xml but have used simple xml and found it pretty self explanatory. There are lots of alternatives like xml_parser and you can use xml_parse_into_struct.