I spent some real time thinking about this issue today.
 
Attached is a memo on the subject which is big enough that I didn't want to just make it an email body.
 
Summary: I think current 034 semantics are broken and should be fixed along the lines of the element - overrides - type principle. The example in the scoping section is not right.
 
But the issue has some depth to it. E.g., I think the grammar productions are broken currently and we need to fix those also.
 
See attached.
 
...mike
 

Mike Beckerle | OGF DFDL WG Co-Chair | CTO | Oco, Inc.
Tel:  781-810-2125  | 100 Fifth Ave., 4th Floor, Waltham MA 02451 | mbeckerle.dfdl@gmail.com