The official language specification for XPath 2.0 on W3.org details that the language does indeed support if statements. See Section 3.8 Conditional Expressions, in particular. Along with the syntax format and explanation, it gives the following example:
if ($widget1/unit-cost < $widget2/unit-cost)
then $widget1
else $widget2
This would suggest that you shouldn't have brackets surrounding your expressions (otherwise the syntax looks correct). I'm not wholly confident, but it's surely worth a try. So you'll want to change your query to look like this:
if (fn:ends-with(//div [@id='head']/text(),': '))
then fn:substring-before(//div [@id='head']/text(),': ')
else //div [@id='head']/text()
I do strongly suspect this may fix it however, as the fact that your XPath engine seems to be trying to interpret if
as a function, where it is in fact a special construct of the language.
Finally, to point out the obvious, insure that your XPath engine does in fact support XPath 2.0 (as opposed to an earlier version)! I don't believe conditional expressions are part of previous versions of XPath.