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Section 3.1.2 of Structures reads in part All the element information items in the XML representation of a schema must be in the XML Schema namespace, that is their [namespace name] must be http://www.w3.org/2001/XMLSchema. This does not seem at first glance to be true: the children of xsd:documentation and xsd:appinfo are allowed to be in other namespaces, and yet they are element information items in the XML representation of a schema. I think the paragraph needs to be recast to make whatever point it is trying to make without the need for incorrectness. Perhaps it would suffice to replace 'All the' with 'The key'.
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.