I think using xpointer here() function and then a relative addressing is not the best way to make
iter-document xlink references survive the inclusion processus. see
http://www.w3.org/TR/xptr-xpointer/#b2b1b1b3b7b5
the syntactic construct
xlink:href=""#xpointer(here()/id('item1'))"
should work I think at least for implementation not limited to the REC sanctified very limited subset.
The same principle should work for structure based relative links too assuming the relative pointer operates
within the included subset.
Daniel