While I can understand Joseph's point that not all educational establishments have access to the resources that a distance learning institution such as Athabasca has I still think Moodle should be flexible enough to allow those institutions who do have staff members with these skills to be able to use them.
I agree with Ian that as far as possible (I know the Moodle development team also has limited resources!) it would be nice for front-end designers (XHTML, CSS) to be able to improve the visual appearance and the usability of content and interactions within Moodle.
For me the reason I think it is important to make the front-end code as accessible as possible is primarily for reasons of usability, the secondary reason is aesthetics (although sometimes of course the two can be linked). Sometimes Moodle creates a confusing user-experience (for example when the pseudo breacrumb navigation had a link to a resources page that the user had never been to). I know this issue has now been resolved. I guess the point I am making is that as far as possible control over content and navigation mechanisms should be achievable by altering the XHTML and CSS rather than trying to hack PHP. With the more functional modules within Moodle I think that the interactions need to be designed and user-tested and then developed. People who have been doing rapid prototyping recently using Balsamiq are I believe onto a good thing as it makes sense to design the interactions and think them through before implementing.

