TSQL and xQuery magic

A person from StackOverflow helped me to find simple SQL to put field names and corresponding values of one row into text. If you run SQL below on Northwind database:

select T2.N.value('local-name(.)', 'nvarchar(128)')+': '+   
       T2.N.value('.', 'nvarchar(max)') 
from (select * 
      from Customers 
      Where CustomerID='ALFKI' 
      for xml path(''), type) as T1(X) 
  cross apply T1.X.nodes('/*') as T2(N)

You will get result as:

CustomerID: ALFKI 
CompanyName: Alfreds Futterkiste 
ContactName: Maria Anders 
ContactTitle: Sales Representative 
Address: Obere Str. 57 
City: Berlin 
PostalCode: 12209 
Country: Germany 
Phone: 030-0074321 
Fax: 030-0076545

Very simple SQL, although I have to learn what really means the last line.

Here the original discussion: TSQL: Values of all field in a row into one string