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The discussion of createElement, createElementNS says to "Run element initialization algorithm with the newly created element". What happens if the ready callback raises an exception? Is that propagated to the caller of createElement? These issues get trickier in places which plausibly do tree modification and run lifecycle callbacks, such as appendChild, but see bug 21825 seeking clarification on whether they do.
I am not sure what to do here. None of the specs that talk about callback mention anything special about exceptions being thrown inside those callbacks. Why should we be any different?
I thought about this more. You're right--errors are exceptional. I guess UAs can log them; if authors need to propagate them they can guard their ready callback with try/catch and log them on the element itself and require the caller to collect errors.