plpgsql: another new reserved word

I stumbled on another gotcha in 8.3's plpgsql:

create or replace function foobar() returns text as $$
declare   foobar  text;
begin return 'ok'; end;
$$ language plpgsql;


Results in error:

ERROR:  syntax error at or near "foobar"
LINE 3:     foobar  text;           ^

If this is intentional, then could the error message be made better?

-- 
marko