I have a little more information on this to offer. Leaving the current schema generation alone, I end up with a complex type containing two elements refs to the same element (one with maxOccurs and minOccurs).
As an experiment, I fed this to wsdl2java, which told me that this was very sad and encouraged me to 'apply a customization to fix the names'. Well, OK, then, that would seem to favor my theory that auto-generated wrapper types should favor @WebParam names over XmlRootElement refs.
