whiteSpace and normalizedString

Here are two snips from http://w3c.org/TR/xmlschema-2/:

<snip n="1">
For all ·atomic· datatypes other than string (and types ·derived· by ·restriction· from it) the value of whiteSpace is collapse and 
cannot be changed by a schema author;
</snip>

<snip n="2">
  <xs:simpleType name="normalizedString" id="normalizedString">
    <xs:annotation>
      <xs:documentation
        source="http://www.w3.org/TR/xmlschema-2/#normalizedString"/>
    </xs:annotation>
    <xs:restriction base="xs:string">
      <xs:whiteSpace value="replace"
        id="normalizedString.whiteSpace"/>
    </xs:restriction>
  </xs:simpleType>
</snip>

Is assertion under "1" correct?

Regards,
Nikola