Using structured data formats like XML in wireless sensor networks to support exchangeability and heterogeneity on application level has become an important research topic in the area of large scale networked sensing systems. Besides, the usage of XML encourages the adaptation of service oriented programming techniques to simplify sensor network application engineering. While the sensor nodes still have significant resource limitations in terms of energy and memory capacity and computational power, recent data management approaches show positive results to bridge this resource gap. Nevertheless, further optimizations are needed to enhance the application range to support larger sets of data within the networks. In this work we present an optimization for a template object compression scheme that is based on a stream-oriented XML compression and supports dynamic data management and query evaluation on the compressed data. We hereby present a complete solution for XML compression, data processing and query evaluation that can be further embedded in the engineering process to support developers. The presented solutions are evaluated and result into significant improvements in comparison to previous approaches, when processing complex large scale XML documents.