no targetNamespace, elementFormDefault qualified

Hi,

 Given that "If the URI reference in a default namespace declaration is
empty, then unprefixed elements in the scope of the declaration are not
considered to be in any namespace" thus there is no namespace to make up the
namespace part of the QName if one has a blank namespace, shouldn't a schema
with no targetNamespace and a declaration of elementFormDefault qualified
raise errors? I'm asking because I just encountered a schema with this
structure, and it bugs me. 
 

Cheers,
Bryan