Default namespaces in QNames

Contradiction in the XSLT spec?

From http://www.w3.org/TR/xslt#qname

"The default namespace is not used for unprefixed names."

Yet...

From http://www.w3.org/TR/xslt#section-Creating-Elements-with-xsl:element

"If the namespace attribute is not present then the QName is expanded into
an expanded-name using the namespace declarations in effect for the
xsl:element element, including any default namespace declaration."

Also, from http://www.w3.org/1999/11/REC-xslt-19991116-errata/#E7

"If there is a default namespace in scope, then it is used to expand an
unprefixed QName [that's the argument of element-available()]"

So, should the general section on QNames be qualified to account for the
cases where the default namespace *is* used?

Evan Lenz
XYZFind Corp.