a conceptual clarification

[Michael Kay]

Following from this, will it be correct to assume that  the appearance of a
let statement after a for statement be also treated as equally undesirable
and error-prone programming technique in XQuery (because in course of
iteration,  a let statement is then forced to rebind  the same variable name
say  $x several times, probably forcing it to bind to a new value each
time).  
 
No, of course not. In this case there is no possible risk of confusion about
which declaration the variable reference is referring to.
 
Michael Kay
http://www.saxonica.com/ 
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