The point is, that if you are using that same xml response for any other platform, iPhone, Android, web requests, etc etc - you will need the same 'post-downloaded fix' in each specific application that will be using it or the xml parse will fail on those too. It's better to correct the xml encoding on the server before the xml is sent out and then you can use the same feed for everything with no problems.
Of course, if Roku and this app is the only thing that will ever be using it, then use whatever you like.... 🙂