Wow, I had no idea about this whole issue with being unable to move forward with the POM. This is a really tough problem. I just didn't even think about that because I'm used to working with XML parsers that don't even do schema validation.
So I guess I'm pretty much stuck, because I can't put mediation settings in settings.xml or else I lose predictability, and I can't put them in the pom without a schema change (unless someone can tell me where to "sneak" them into the existing schema; j/k). Sadly, even if I wanted to just do it in-house and not try and contribute back, and even though I can get all our devs to install our custom build of mvn that recognizes the new schema, I'd still be hosed because we use external tools like Nexus and Jenkins that may parse the pom and barf on invalid XML. We can't possibly build and maintain patches against all these external tools :( Phillip