Hi Roger,
This is the best I could find for the value constraint of an id attribute (on the instance element):
An xsd:ID value must be an NCName. This means that it must start with a letter or underscore, and can only contain letters, digits, underscores, hyphens, and periods
(Note, that we haven't specified this yet in the ODK XForms spec.)
In my opinion, it is best to keep the src attribute of an instance as a URL with jr:// scheme, but this is definitely debatable. I prefer to do the mapping from the jr:// scheme to a https:// URL on the side of the XFormsManifest, so we avoid cross-domain access issues. So the burden to implement this could be on the server side, on the XLSForm (pyxform) side or on both.
XLSForm is of course very flexible. We could probably extend it in many ways, e.g. by implementing a way to add type='instance' which could then perhaps be used in conjunction with a regular select_one and select_multiple.
Cheers,
martijn