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PSVI for elements has: [nil] true if clause 3.2 of Element Locally Valid (Element) (ยง3.3.4.3) above is satisfied, otherwise false But clause 3.2 has been changed to cover the {nillable} = true case. The above should really point to 3.2.3 which is for a valid xsi:nil=true.
During its 2008-11-21 telecon, the schema WG adopted a proposal, to fix the link to point to clause 3.2.3, as suggested in the bug report. The proposal (along with some other changes) can be found at (member-only): http://www.w3.org/XML/Group/2004/06/xmlschema-1/structures.omni.20081121.html