I suspect you really want
<test>
<item>
<name/>
<value/>
</item>
</test>
So that's:
<xsl:template match="test|item">
<xsl:copy>
<xsl:apply-templates/>
</xsl:copy>
</xsl:template>
<xsl:template match="name|value">
<xsl:copy/>
</xsl:template>
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference