Ugh, I need to look again. Just some related thoughts I hope:
a) I didn't only have Locus GPX in mind. Some other apps were in use as well, they create different xml formats. Replace with NULL? Do I leave an ugly empty line? May need to look at it again.
b) time xml tag may be stretched over multiple lines.
c) I think with the exclusion of the bracket I prevented greedy matching. Keep in mind Regex matches greedy. a.*b matches until the last "b": 1234abcdgebabbbgggchbdkj - i.e. in GPX it would match from first <time> until the last </time> it can find. This would effectively delete most of the gpx - this is also because sed -z in a way flattens the whole file to one line (otherwise, in the default line-by-line style of sed, regex wouldn't work for xml tag structures IMO)
d) As for the tab I probably was just lazy to look into docs, wasn't sure about it being included in \s, thanks for the info
a) I understand, I associate gpx with locus without thinking that there are other apps

Replace with NULL? sed -i -z 's;[\s\t]*<time>[^<]*</time>[^<]*;;g' sed 's for substitution; regexp for search; text to replace with; g greedy operator' the null in this case is between ;;
b) do you have an example?
c) so you use this method because of the -z parameter, this part is also not clear to me, do you have a file example for which the -z parameter is needed?
Never using the -z parameter makes it harder for me to interpret your regexp, do you have an example file that made it necessary for you to use it?
d) Sometimes being a beginner like me is an advantage because without documentation you do nothing

Thanks for the comprehensive answers, you are very kind as always