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Henry Thompson: The Schema for Schemas rules this out. But, this only applies to the XML representation layer. It's a bug that there's no clause in "Schema Component Constraint: Element Declaration Properties Correct" ruling this out for components as well. See: http://lists.w3.org/Archives/Public/www-xml-schema-comments/2002AprJun/0029.html
Discussed at the May 23 telecon: http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2002May/0091.html Resolved to classify R-137 as an error and instruct editor to draft erratum ading a suitable component constraint. Draft errata posted at: http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2002Oct/0201.html Discussed and approved at Oct. f2f. See: http://www.w3.org/XML/2002/10/xml-schema-ftf-minutes Erratum E1-36 added.