I have a Component which has API exposed with some 10 functionality in all. I can think of two ways to achieve it:
Give out all these functionality as separate functions.
Expose only one function which takes an XML as input. Based on request_Type specified and the parameters passed in the XML, I internally call one of the respective functions.
Q1. Will the second design be more loosely coupled than the first ?
I always read about how I should try my components to be loosely coupled, should I really go to this extent to achieve lose coupling ?
Q2. Which one of these would be a better design in terms of OOP and why?
Edit:
If I am exposing this API over D-Bus for others to use, will type checking still be a consideration to compare the two approaches? From what I understand type checking is done at compile time, but in case when this function is exposed over some IPC, issue of type checking comes into picture ?
The two alternatives you propose do not differ in the (obviously quite large) number of "functions" you want to offer from your API. However, the second seems to have many disadvantages because you are loosing any strong type checking, it will become much harder to document the functionality etc. (The only advantage I see is that you don't need to change your API if you add functionality. But at the disadvantage that users will not be able to figure out API changes like deleted functions until run-time.)
What is more related with this question is the Single Responsiblity Principle (http://en.wikipedia.org/wiki/Single_responsibility_principle). As you are talking about OOP, you should not expose your tens of functions within one class but split them among different classes, each with a single responsibility. Defining good "responsibilities" and roles requires some practice, but following some basic guidelines will help you to get started quickly. See Are there any rules for OOP? for a good starting point.
Reply to the question edit
I haven't used D-Bus, so this might be totally wrong. But from a quick look at the tutorial I read
Each object supports one or more interfaces. Think of an interface as a named group of methods and signals, just as it is in GLib or Qt or Java. Interfaces define the type of an object instance.
DBus identifies interfaces with a simple namespaced string, something like org.freedesktop.Introspectable. Most bindings will map these interface names directly to the appropriate programming language construct, for example to Java interfaces or C++ pure virtual classes.
As far as I understand, D-Bus has the concept of differnt objects which provide interfaces consisting of several methods. This means (to me) that my answer above still applies. The "D-Bus native" way of specifying your API would mean to exhibit interfaces and I don't see any reason why good OOP design guidelines shouldn't be valid, here. As D-Bus seems to map these even to native language constructs, this is even more likely.
Of course, nobody keeps you from just building your own API description language in XML. However, things like are some kind of abuse of underlying techniques. You should have good reasons for doing such things.