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The following text appears in both 13.11 fn:innermost and 13.12 fn:outermost: "That is, the function takes as input a sequence of nodes, and returns every node within the sequence that is not an ancestor of another node within the sequence; the nodes are returned in document order with duplicates eliminated." also "If the source document contains nested sections represented by div elements, the expression innermost(//div) returns those div elements that do not contain further div elements."
Thanks for pointing this out, and sorry I didn't get this done in time to make the 14 June 2011 draft, but the changes have now been applied. Since this was editorial, I'm marking as resolved/fixed.