I can't really point out a downside, there has been a good amount of JSON usage recently by web developers for data exchange. That being said, one concern that I know of and developers using JSON often have is that not very human readable when compared to xml. But in the end, the code has to read it so its not much of an issue, the developer should maintain good document that can explain the JSON the server/client side spits out. It is also beneficial for other team members to make sense of the large humongous strings.
I suggested JSON because last time I met the team, we concluded that the amount of data we are going to spit out in logging is going to be large and we want to communicate it between the client and server as the user interacts. So you dont want to make heavy transactions otherwise you will have ugly delays in user interaction. Web browser development teams are pushing limits (chrome's V8 engine) in getting browsers that can chew a large amount of JavaScript (JSON parsed using JavaScript) and as I mentioned earlier, JSON is light (minimum overhead)..
If the design has changed from what we discussed (we didnt have a fix architecture but we made some calculations) then the above can be scrapped and there is a need to re evaluate options for data communication between the serve and client.
Thanks,
Vasu