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Section 5.1 rule 3(b)(iii) states: The default namespace applies to any unqualified element names appearing in the cdata-section-elements attribute of xsl:output or xsl:result-document It also applies to such names appearing in the (new) suppress-indentation attribute of xsl:output or xsl:result-document. This is stated in section 25 for xsl:output/@suppress-indentation and in section 24.1 (in a non-normative note) for xsl:result-document/@suppress-indentation.
I have made this editorial change. (It's editorial because the information already appears elsewhere in the spec.)