What does markup capture?

Compare

<head>Upon Julia's Clothes</head>
<lg><l>Whenas in silks my <hi>Julia&lt/hi> goes,</l>
<l>Then, then (me thinks) how sweetly flowes</l>
<l>That liquefaction of her clothes.</l>
</lg>

and

<s n="1" role="head">
     <w type="pp">Upon</w> 
     <w type="np">Julia</w><w type="pos">'s </w>
     <w type="nn2">Clothes</w>
</s>
<s n="2" role="line">
     <w type="adv">Whenas</w> 
     <w type="pp">in</w> 
     <w type="nn2">silks</w> 
     ...
</s>

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Digital Texts with XML and the TEI