My iTunes Library.xml is also in that list. That's playlists, ratings and lots of info I'd rather not lose. Good to know that I need manually back that up.

iTunes Library, which is backed up, is the source of playlists, rating and all that other information. Deleting (or moving) the xml file will cause it to be regenerated. It's there to make it easier for other apps to get at that information by parsing a xml file. Apple's saving a bit of room on your backup by avoiding a file that can be easily re-created off the original information.

http://docs.info.apple.com/article.html?artnum=93732

You can also use the xml file to rebuild your Library file if it becomes corrupted.

http://docs.info.apple.com/article.html?artnum=93313

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