What would be the consequence of prohibiting local element and attribute declarations?

"Costello, Roger L." <[email protected]>
Newsgroups gmane.text.xml.schema.devel
Message-ID <[email protected]>
Hi Folks,

Suppose a team has this XML Schema design policy:

   No local element or attribute declarations
   are permitted. All elements and attributes
   must be globally declared. 

This policy strips the XML Schema language of a significant functionality. What are the consequences? Specifically what things will not be expressible because of this policy? Would this policy result in the creation of XML Schemas that don't integrate with other XML technologies?

/Roger
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