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In section 3.13.1 Conditional Element Inclusion we mention the following about its use on xsl:stylesheet and xsl:transform: "If the xsl:stylesheet or xsl:transform element itself is effectively excluded, the effect is to exclude all the children of the xsl:stylesheet or xsl:transform element, but not the xsl:stylesheet or xsl:transform element or its attributes." It seems to make sense to include xsl:package here as well. I don't necessarily see a use-case for it (but I don't see one for xsl:stylesheet/xsl:transform either), but neither do I see how otherwise a package is supposed to behave if use-when="false()" on xsl:package.
I agree. (I don't think there was ever a particularly strong use case for this. We either had to give it a meaning, or make it an error, and we chose to give it a meaning.)
The WG agreed and the change has been applied.