Yes, I can see that. But I don't see why you have to put all that schema declaration business in the root element of your XSLT. If you want it in elements of your output document then do that where you generate those elements.
You would only need to declare (for example) the xmlns:qc="urn:QuoteComplete" namespace in the root of your XSLT if you were matching on elements in that namespace. And I don't think you are doing that. Not in the example you showed, anyway. And I can't think of any purpose for the xsi:schemaLocation namespace there.
subject: XML to XML using XSL with output xml conforming to XSD.