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It seems to me that function item coercion should be required to raise a type error if there's a mismatch in the number of parameters (expected vs actual), because the semantics of the new function don't make any sense in such a case. (Currently, an implementation is merely *allowed* to raise a type error.)
I agree.
The Working Group agrees.
I have made an appropriate change to the editor's draft of the XQuery/XPath spec.