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="Crafting2_Template|809" />
  </query-continue>
  <query>
    <pages>
      <page pageid="87" ns="0" title="Crafting" />
      <page pageid="553" ns="0" title="Improvised Ashwood Short Bow" />
      <page pageid="613" ns="0" title="Rabbit pelt" />
      <page pageid="615" ns="0" title="Rope" />
      <page pageid="718" ns="0" title="Earthworm" />
      <page pageid="720" ns="0" title="Improvised Fishing Rod" />
      <page pageid="741" ns="0" title="Fireplace Kit" />
      <page pageid="749" ns="0" title="Stone" />
      <page pageid="752" ns="0" title="Wooden Stick" />
      <page pageid="808" ns="0" title="Deer pelt" />
    </pages>
  </query>
</api>