While your observation may be true in general it is off the mark in
this instance. Try both these documents against the HTML 2.0 DTD -
they are both valid:
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<title>LI test</title><ul><li>one</li><li>two</li></ul>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<title>LI test 2</title><ul><li>one<li>two</ul>
-- Chris Lilley, Technical Author +-------------------------------------------------------------------+ | Manchester and North HPC Training & Education Centre | +-------------------------------------------------------------------+ | Computer Graphics Unit, Email: Chris.Lilley@mcc.ac.uk | | Manchester Computing Centre, Voice: +44 161 275 6045 | | Oxford Road, Manchester, UK. Fax: +44 161 275 6040 | | M13 9PL BioMOO: ChrisL | | URI: http://info.mcc.ac.uk/CGU/staff/lilley/lilley.html | +-------------------------------------------------------------------+