This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
Well, yes, what you have there is basically the identity transformation, so naturally what you get as a result is basically the entire document. That's what the identity transformation does, it just copies the entire document.
So, if your desired output isn't a slightly-modified version of the entire document, then don't start with the identity transformation as the basis for your XSLT code.