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A minor comment concerning "XML Schema Part 1, 3.14, Example": from a physical viewpoint, should the name "farenheitWaterTemp" not better be "celsiusWaterTemp"? See: http://lists.w3.org/Archives/Public/www-xml-schema-comments/2003JanMar/0056.html
A proposal to resolve this issue has been placed at http://www.w3.org/XML/Group/2004/06/xmlschema-1/structures.cleanup-1.200610.html (member-only link) for review and action by the WG.
The proposal mentioned in comment #1 has been approved by the WG and integrated into the status-quo text of the spec. It should be included in due course in the next public working draft.