Anyhow, I can't say I'm thrilled that some deeply nested subtree of divs for instance might be closed by a open-button tag just because they were themselves part of a button, except when... well, lots of exceptions. It's what we have, I guess.
It's also not a (fully) solved problem; just earlier this year I had to work around an issue in the chromium html parser that caused IIRC quadratic parsing behavior in select items with many options. That's probably the most widely used parser in the world, and a really inanely simple repro. I wonder whether stuff like that would slip through as often were the parsing rules at all sane. And of course encapsulation of a document-fragment is tricky due to the context-sensitivity of the parsing rules; many valid DOM trees don't have an HTML serialization.
You can see that in the case where ASN.1 data need to be exchanged. You could decide to always send them in the DER form (conservative) but accept BER (liberal). BER is still an unambiguous encoding for ASN.1 data but allow several representations for the same data.
The problem with BER mainly lies with cryptographic signature as the signature will only match a specific encoding so that's why DER is used in certificates. But you can still apply Postel's law, you may still accept BER fields when parsing file. If the field has been incorrectly encoded in a varied form which is incompatible with the signature, you will just reject it as you would reject it because it is not standard with DER. But still, you lessen the burden to make sure all parts follow exactly the standards the same way and things tend to work more reliably across server/clients combinations.
As they should. Postel's Law was a terrible idea and has created minefields all over the place.
Sometimes, those mines aren't just bugs, but create gaping security holes.
If your client is sending data that doesn't conform to spec, you have a bug, and you need to fix it. It should never be up to the server to figure out what you meant and accept it.