I'm pretty sure that Bungie controls what he sells in advance. The data is available ahead of time to look at (in the network's data packet lineup), but unaccessible to players until his reset when he arrives each week. It may still be RNG, but the chance of that is low with the other information in mind (if it was predecided a week or two in advance, the likelihood of RNG itself is low)
That's the current theory, anyway.
But, if it were decided through RNG, specific pieces of the DLC equipment would probably have a higher weight, but might also have rules in place to prevent them from appearing more than once in a set amount of time.
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But the numbers don't lie: if it is RNG, the DLC weapons seems to have a much higher weight than the non-dlc weapons. Which doesn't mean that it isn't random, it just means there are more copies of the DLC names in the hat than non-dlc.
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I really have no idea how it works. I posted this before the 1.1.1.1 patch, so it could have all changed. We know Bungie changed what Xur was selling this week (selling Red Death instead of Universal Remote like was predicted), but whether they can manually control his inventory is purely speculation. They will never tell us how it's done. All I wanted to do was give some statistics. I'm neutral either way. I don't care how his inventory works, as long as he stops bringing crap stuff. XD