I think the guys behind Gargoyles were thinking about Tony Stark when the came up with David Xanathos. Both these guys use their wealth to
do what ever they want. Ironman has taken on the Hulk and Thor using modifications to his suit. No preparation is allowed so he wouldn't have
these modifications. But his regular suit is still pretty tough. Xanathos takes on Goliath and Oberon with the same suit, this is something to remember here.
Xanathos' suit flies by using jetboots and wings while Ironman flies with only jetboots. Take out the wings and Xanathos can't fly.
Ironman is agile in flight and on ground. Xanathos is sort of just a walking terret. He only has the wrist mounted blaster while Ironman
has palm blasters on both hands plus other gadgets. A remembered a strange thing about Xanathos' armour when I did this battle. Whenever he took off his helmet,
he had to turn that switch on his chestplate to depressurize the suit. Why was the suit pressurized? There was an episode
when something happened to the tube that carries the pressurized gas, he had to take off the helmet. No helmet means no targeting system.
This means that Ironman will have his targeting systems and sensors as well as superior flight capabilities. Ironman wins because he has the better mousetrap.
Winner: Ironman
Updated after Extremis story arc in Ironman:
Ironman now has the ability to mentally control his armour and other machines, making him able to control Xanathos' armour. So he definitelt wins this one.