Importing composite data

I would like to use feeds to import xml data similar to:

<root>
  <stockcode>XXYY</stockcode>
  <classification>
    <make>Audi</make>
    <model>A2</model>
  </classification>
  <price>£1000</price>
</root>

Stockcode and price would populate fields in a node while the contents of classification would create/update an hierarchical vocabulary.

To do this I am going to write a custom parser and processor. The processor will peel off the node bits and pass them to FeedsNodeProcessor. It will then take the classification tag and update the taxonomy (without using the FeedsTermProcessor doesn't appear to handle hierarchies).

Question is whether this is all overkill, have I misunderstood feeds? Or is this the only sensible way of tackling this problem?

If there was a feeds group or IRC channel I would post there but this was the only place I could find to pose this question.