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See also the discussion at http://www.w3.org/2006/08/30-i18nits-minutes.html#item02 . Identifying s.t. as a term does not mean that all child elements and / or attributes are also terms. It rather means that there is no such inheritance, and that the textual content of the element is the content of the term. One solution in my implementation, see Fig. 7 at http://www.w3.org/People/fsasaki/archforms-css-rdf : Say that inheritance applies to { "onlyElements" | "elementsAndAttributes" | "none" }.
Discussed at http://www.w3.org/2006/09/06-i18nits-minutes.html#item51 . Action: WG to look at it.
Discussed at http://www.w3.org/2006/09/20-i18nits-minutes.html#item02 . New proposal at http://lists.w3.org/Archives/Public/public-i18n-its/2006JulSep/ , mail with the subject "On issue 3640 and action item http://www.w3.org/2006/09/20-i18nits-minutes.html#action12" Action: WG to discuss.
Discussed at http://www.w3.org/2006/09/27-i18nits-minutes.html#action02 . Felix made the change for Action item http://www.w3.org/2006/09/27-i18nits-minutes.html#action03 .
Closed. I'm satisfied with the decision of the Working Group.
Summary: The Working Group decided to accept the proposal and to add a more explicit description of the inheritance / default / overriding behavior of the data categories.