Note that XSLT is planned to be removed from web browsers in late 2026, so this answer will stop working then.

This can be done using native javascript tools, without 3rd party libs, extending the @Dimitre Novatchev's answer:

var prettifyXml = function(sourceXml)
{
    var xmlDoc = new DOMParser().parseFromString(sourceXml, 'application/xml');
    var xsltDoc = new DOMParser().parseFromString([
        // describes how we want to modify the XML - indent everything
        '<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform">',
        '  <xsl:strip-space elements="*"/>',
        '  <xsl:template match="para[content-style][not(text())]">', // change to just text() to strip space in text nodes
        '    <xsl:value-of select="normalize-space(.)"/>',
        '  </xsl:template>',
        '  <xsl:template match="node()|@*">',
        '    <xsl:copy><xsl:apply-templates select="node()|@*"/></xsl:copy>',
        '  </xsl:template>',
        '  <xsl:output indent="yes"/>',
        '</xsl:stylesheet>',
    ].join('\n'), 'application/xml');

    var xsltProcessor = new XSLTProcessor();    
    xsltProcessor.importStylesheet(xsltDoc);
    var resultDoc = xsltProcessor.transformToDocument(xmlDoc);
    var resultXml = new XMLSerializer().serializeToString(resultDoc);
    return resultXml;
};

console.log(prettifyXml('<root><node/></root>'));

Outputs:

<root>
  <node/>
</root>

JSFiddle

Note, as pointed out by @jat255, pretty printing with <xsl:output indent="yes"/> is not supported by firefox. It only seems to work in chrome, opera and probably the rest webkit-based browsers.