Scala: XML Whitespace Removal?

scala.xml.Utility.trim() should do what you want:

scala> val x = <foo>
     |   <bar>hello world</bar>
     |   <baz>  xxx  </baz>
     | </foo>
x: scala.xml.Elem = 
<foo>
         <bar>hello world</bar>
         <baz>  xxx  </baz>
       </foo>

scala> scala.xml.Utility.trim(x)
res0: scala.xml.Node = <foo><bar>hello world</bar><baz>xxx</baz></foo>