Do you get?:
compilation error: file - line 14 element template
element template only allowed as child of stylesheet
I don't think you should.
---------------<snip>-------------------
xsltproc - <<EOF
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
version="1.0">
<xsl:output method="text"/>
<xsl:template match="/">
<xsl:text>Hello </xsl:text>
<xsl:if test="false()">
<xsl:text>world</xsl:text>
</xsl:if>
</xsl:template>
<x:ignore xmlns:x="x">
<xsl:template match="/">
<!--this better not be here!-->
</xsl:template>
</x:ignore>
</xsl:stylesheet>
EOF