The Structures spec has several occasions to refer to the set of elements
which are legitimately nilled (i.e. their governing declaration has
nillable=true and the element instance has xsi:nil='true').  In XSDL 1.0
and XSDL 1.1 both, this takes the form of a reference to clause 3.2 of
the validation rule Element Locally Valid (Element).

In XSDL 1.0, this clause reference is correct.  In XSDL 1.1, clause
3.2 now handles the more general case where the element declaration
has nillable=true, regardless of what is happening in the instance.
The consequence is to render incomprehensible (and wrong) most of the 
other parts of the spec that refer to clause ELV(E) 3.2.

The clause that covers the same set of situations is now numbered 
3.2.3.

Either the editors should update the clause references to produce 
the correct number, or a term should be defined to denote the relevant
concept and the clause references should be rephrased to use 
references to the new technical term.

Personally, this editor believes the latter (technical term) is 
preferable (both here and for virtually every occurrence of clause 
references in the document), but the Working Group or other editors 
may have different views.