Custom Web Publishing with XML allows web developers to integrate FileMaker database content into custom websites by enabling them to send XML queries to FileMaker Server and receive the database data in XML format, which can then be incorporated into other applications. This technology provides benefits such as customization of the user experience, data interchange capabilities, integration of FileMaker data into other systems, and security controls over published data. Custom Web Publishing with XML is based on open standards like XML and allows developers to leverage existing skills and tools.