But most people prefer .00

I thought we established already that 1 xbt means 100 satoshis and the colloquial 1btc equals 1 bitcoin?

That was in this topic: https://bt.irlbtc.com/view/149150.0

The rationale behind it being that XBT should be used in financial systems which are most comfortable with two digits after the dot. Although I was against it initially, I now think this is a very elegant solution.

That is, 1 XBT = 100 satoshi's. Making a distinction between XBT and xbt seems confusing to me, ideally we never have to make a distinction between upper and lower case.

In my short time knowing about Bitcoin, I've always seen that XBT is suggested as an ISO-compliant code for the currency (i.e. BTC = XBT). Now using it for other unit would be confusing.

Four digits.  You could do it like this.

$0.1148

good idea! thank you!