Actually there is a mention of #default on page 474, though it's not mentioned in the proforma on page 467. The value #all is indeed not mentioned, as far as I can see. Sorry about that oversight: I'll note it for an erratum.
It's not only missing from the book, as far as I can see neither of these two options are allowed by the schema for XSLT stylesheets.
Michael Kay
Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer's Reference