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4.1.5 Function Calls Notation (two blurbs on fs:convert-simple-operand and PrototypicalValue) It seems like these two blurbs are saying mostly the same thing. Perhaps they could be merged. Maybe change "PrototypicalValue" to "PrototypicalValueForType". "Also, note that in the case of built-in functions where the expected type is specified as numeric, the prototypical value is a value of type xs:double." This shouldn't be in a mere Note. Also, you first have to say that when the expected type is specified as numeric, Type <: xs:anyAtomicType* is deemed to be true. Actually, you could cover both by saying (back in 3.1.1) that for such functions, the signature in funcType has xs:double for each 'numeric' parameter. That will ensure that Type <: xs:anyAtomicType* is true, and that a value of type xs:double is used for PrototypicalValue.
The fix for this bug does not appear in the Recommendation of 23 January 2007. It will be considered for a future publication (either an Errata document or some possible future version of the specification).