I think that people have been "well-formed" to mean "well-formed in the context of an externally specified encoding". I want us to use "well-formed" to mean exactly what it means in the XML 1.0 spec. Appendix F talks about external encodings, but it does not make them part of the well-formed definition. It also says that RFCs are more authoritative than the XML 1.0 spec on this subject. To me, that means we need a different term when we talk about XML with externally specified encoding.
<?xml version="1.0" encoding="iso-8859-1" ?> <pløtz/>