xsd is normally used by wsdl (which defines web service operations, etc) and this wizard maps xsd data structure to Pega data models, which then can be used by pega connectors. What specifically are you looking for here? Do you have an xsd available?
I think he specifically asked for the Data Transform option. The Data Transforms generated only put the empty string on each property. This way you can initialize a whole Pega with all the properties by executing the generated pyXMLPage (name similiar) Data Transform.