To Dale's point on the conference call.
In CAM templates we are using the CXF format of semantics of a schema as an abstraction layer that is particularly easy to process using XSLT.
To see how CXF works - simply use the camprocessor toolset -
and ingest your XSD schema into CAM template. Then under Files / Export you will see CXF as an option.
Save to that - and then open in your favourite XML editor tool.
Examining that you will see how the information in the schema is laid out using XPath to associate elements and attributes in the schema structure in a way that is simple for XSLT to recurse thru.
For example - when you use the View / Reports / Tabular report - all that information is being formatted using XSLT from the CXF layout - and runs to about 200 lines of XSLT.
For examples of the actual XSLT - you can pull these from the camprocessor SVN library on SourceForge.
But more simply - whenever you use any of the tools in the camprocessor toolset - you are running XSLT scripts in Saxon to achieve all of these - against the CXF and CAM template formats.
Basically the CAM template is the human readable WYSIWYG format - and the CXF is the same information in internal machine optimized format.
So - in summary - we already have this nice XSD abstraction approach that is very XSLT friendly as part of the CAM specification work.
Thanks, DW