It might be technically possible to achieve some of the goals using DTDs simply by refactoring the parameter entities (again).
W3C XML Schema would be better than DTDs.
I’m not sure the abstraction is right for schemas with lots of mixed content.
Determinism would still be a problem.
Local element declarations force customizations to “cascade” up the tree.
No support for co-constraints.
Schematron could do it all, but it would require a lot of rules.