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There is no explicit statement in the spec that it is an error to use xsl:copy when there is no context item. Clearly this should be an error. The question is, what error? In many cases the error can be detected statically, though in a few cases this may not be possible (e.g. within a named template). xsl:number handles this by making it a type error (XTTE0990). Oddly, however, using select="." when there is no context item is a dynamic error rather than a type error (XPDY0002). Pending a decision on this, I am creating a test case (copy903err) in which the expected error code is the new code XTTE0945.
Agreed that this should be type error XPDY0002; an erratum will be drafted to that effect.
On May 13, 2010 the XSL WG agreed that this should become an erratum and that the bug should be closed.
I believe that comment #1 captures the decision incorrectly - the note was written in haste during a meeting, and the agreed error code should be the type error XTTE0945 not the dynamic error XPDY0002.
This will be erratum E44.