From http://www.w3schools.com (Copyright Refsnes Data)

Why Use XML Schemas?

XML Schemas are much more powerful than DTDs.

XML Schemas Support Data Types

One of the greatest strength of XML Schemas is the support for data types.

With support for data types:

It is easier to describe allowable document content
It is easier to validate the correctness of data
It is easier to work with data from a database
It is easier to define data facets (restrictions on data)
It is easier to define data patterns (data formats)
It is easier to convert data between different data types

XML Schemas use XML Syntax

Another great strength about XML Schemas is that they are written in XML.

Some benefits of that XML Schemas are written in XML:

You don't have to learn a new language
You can use your XML editor to edit your Schema files
You can use your XML parser to parse your Schema files
You can manipulate your Schema with the XML DOM
You can transform your Schema with XSLT

XML Schemas Secure Data Communication

When sending data from a sender to a receiver, it is essential that both parts have the same "expectations" about the content.

With XML Schemas, the sender can describe the data in a way that the receiver will understand.

A date like: "03-11-2004" will, in some countries, be interpreted as 3.November and in other countries as 11.March.

However, an XML element with a data type like this:

ensures a mutual understanding of the content, because the XML data type "date" requires the format "YYYY-MM-DD".

XML Schemas are Extensible

XML Schemas are extensible, because they are written in XML.

With an extensible Schema definition you can:

Reuse your Schema in other Schemas
Create your own data types derived from the standard types
Reference multiple schemas in the same document

Well-Formed is not Enough

A well-formed XML document is a document that conforms to the XML syntax rules, like:

it must begin with the XML declaration
it must have one unique root element
start-tags must have matching end-tags
elements are case sensitive
all elements must be closed
all elements must be properly nested
all attribute values must be quoted
entities must be used for special characters

Even if documents are well-formed they can still contain errors, and those errors can have serious consequences.

Think of the following situation: you order 5 gross of laser printers, instead of 5 laser printers. With XML Schemas, most of these errors can be caught by your validating software.