Manual edits to the XSL is a bad idea. InfoPath provides a means of writing your own XSL (if absolutely necessary) using a Preserve Code Block -- but even though IP is not supposed to touch your code in the PCB, it still sometimes does. There's another way to make a manually generated XSL into a view (editing from within InfoPath is not supported) but these are for extreme cases. Yours is not.
The solution to your problem is what you are trying to avoid: The Section.
The indention problem is only a matter of not knowing where to look. There's two places you need to go to fix the issue.
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Section Properties: Set all the padding and margin values to zero.
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Borders: Remove the default 1pt WHITE border from the section.
Now you should have a sectoin with no indention.