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In 1.0, {disallowed substitution} on element declaration (from "block") didn't allow "list" or "union" (section 3.3.1). They are now allowed in 1.0, but they shouldn't be. Similarly, 1.0 didn't allow "substitution" in simple types' {final}, but 1.1 now allows it (section 3.15.1). Both changes should be reverted to match what 1.0 had.
The same applies to {final} on complex types. It should only allow {extension, restriction}.
Proposal: to change the component description as suggested. Resolution: adopted at 2006-10-17 telecon.