The "XO" release were a branch IOS release that introduced hardware support for the Sup 8-E.
That branch has since been folded back into a extended maintenance mainline release - 3.6.xE.
You will not lose any functionality as long as you take care to download and install the correct variant of the universal image (crypto, non-crypto or NPE (no payload encryption)).
For most customers (i.e those not in an area that is export-restricted by the USA), the "crypto" image is the correct one - "cat4500es8-universalk9.SPA.03.06.05.E.152-2.E5.bin" (or .tar if you use the web-based device manager).