I'm getting something very similar with IQs currently...
When sending a custom IQ from my service:
<iq type="result" id="Avpxd-21" from="lighthouse.seattle1.adspore.com" to="bot_plzxls@seattle1.adspore.com/Smack">
<account xmlns="http://adspore.com/v1/lighthouse">
<username>bot_plzxls@seattle1.adspore.com</username>
<email>foo@foo.bar</email>
<objectid>-334015840129932217</objectid>
<visibility>true</visibility>
</account>
</iq>
When receiving via Smack 4:
<iq id='Avpxd-21' to='bot_plzxls@seattle1.adspore.com/Smack'
from='lighthouse.seattle1.adspore.com'
type='result'>true</visibility>
</iq>
Note that it's chopping out everything except the text and closing tag on the IQ's child element.