You are looking at the HTML representation of the XML format.
HTML is good for debugging, but is unsuitable for application use.
Specify the format parameter to change the output format.
To see the non HTML representation of the XML format, set format=xml.
See the complete documentation, or API help for more information. 
<?xml version="1.0"?>
<api>
  <query-continue>
    <links plcontinue="1|0|Notable_Dreamwidth_Reading" />
  </query-continue>
  <query>
    <pages>
      <page pageid="1" ns="0" title="Main Page">
        <links>
          <pl ns="0" title="101 Ways to Help Dreamwidth Grow" />
          <pl ns="0" title="Advocacy" />
          <pl ns="0" title="Compatible clients" />
          <pl ns="0" title="Dev Getting Started" />
          <pl ns="0" title="Development" />
          <pl ns="0" title="Dreamhack" />
          <pl ns="0" title="Dreamwidth Communities" />
          <pl ns="0" title="Dreamwidth Installation" />
          <pl ns="0" title="Finding Content On Dreamwidth" />
          <pl ns="0" title="Guide to happy and effective volunteering" />
        </links>
      </page>
    </pages>
  </query>
</api>