XML, on the other hand, was more of a back-formation – a generalization of HTML; it was not, as I understand it, directly related to SGML in any way. The existence of XML was a reaction to SGML being impractical, so it would be strange if XML directly derived from SGML.
That's incorrect. XML is by definition a proper subset of WebSGML, the SGML revision specified in ISO 8879:1986 Annex K. These two specifications were published around the same time and authored by the same people.
In a nutshell, XML added DTD-less SGML (eg. such that every document can be parsed without markup declarations, unlike eg. HTML which has `img` and other empty elements the parser needs to know about) and XML-style empty elements. The features removed from SGML to become XML were tag inference/omission (as used in HTML), short references (for things such as Wiki syntax, CSV, and even JSON parsing), uses of marked sections other than `CDATA`, more complex use cases for notations, and link process declarations ("stylesheets") plus a couple others.
HTML5 is almost a subset of SGML, barring some ambiguities in itz table spec, HTML comments in script tags and the spellcheck and contenteditable attributes.
And, speaking from experience, the XML nay-sayers should largely be glad if they never had to deal with SGML :)