It's actually outside the Kuiper belt. But you're right, Sedna's discoverer has also said it won't be named as a planet. His reasoning is that Sedna is part of a population, not a solitary individual as the other planets are.
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Population classification. This definition requires a little more explanation and a little more understanding of the solar system, but, in the end, leads to the most satisfactory definition of "planet". Just like the solar system very naturally divides itself between round objects and non-round objects, it also very naturally divides itself between solitary individuals and members of large populations. The best known example of a large population is the asteroid belt. We call it a population because one region of space contains objects with a continuous range of sizes from one moderately large object (Ceres) to a handful of slightly smaller objects (Vesta, Pallas, Hermione) to a huge number of extremely small objects (rocks, dust particles). The solitary individuals are much different. In their region of space there is only them (Earth, say) and then a collection of much much smaller objects (the near-earth asteroids), with no continuous population in between. A single example helps to dramatize the difference between a continuous population and a solitary individual. Ceres, the largest asteroid, has a diameter of 900 km. The next largest asteroid, Pallas, has a diameter of 520 km. After that is Vesta at 500 km, and Hygiea at 430 km, and the list continues on down. The jump in size between asteroids is never more than a factor of two. In contrast, the earth has a diameter of about 12,000 km, while the largest other object in the earth's vicinity, the asteroid Ganymed, has a diameter of about 41 km, a factor of 300!
Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, and Neptune all count as solitary individuals by this definition. Pluto and Quaoar do not. Pluto is clearly a member of the Kuiper belt population, as can be seen from the fact that there are objects in the same vicinity slightly smaller than Pluto (Quaoar, 2004 DW, Varuna), and then even a larger number slightly smaller than that, and then on down.
What about Sedna? Sedna is currently the only object known in its orbital vicinity, but we strongly suspect that there will be many others found out there with time. We thus feel it is more reasonable to classify Sedna as a member of a large population (the inner Oort cloud of objects) rather than a solitary object. This classification saves us from having to go back and reclassify Sedna in a decade when we find more objects! "
Source:
http://www.gps.caltech.edu/~mbrown/sedna/#planets
I like this explanation, I think it makes a lot more sense than saying the planet has "cleared the neighborhood of its orbit". Of course, if their assumption turns out to be wrong and there is no population that Sedna is part of, then it really is a planet.