Templates, Templates, Templates!
I totally get that this product is still in beta, so i don't expect that everything is in working order. However, i'd like to get some clarification on what is supposed to be actual behavior, and what may be a bug.
Hello Aaron,
The difference is in the Layout that you are going to use. Here you have two options - to use our Layout builder or choose a layout that comes from a physical master page file. In both the cases the template is dynamically create and stored into the database. Generally it is better to use use our Layout builder instead of the physical master page file. For nesting some pages and elements you should use Layout builder elements. The support for nested templates within Sitefinity 4.0 Beta is working with templates you build from the Template Editor. You can create a base template from the Sitefinity UI and add parent place holders. Then create child templates which will use the first one as a base. The newly create template will inherit the logic from the base template and all controls inside it. When you use physical master files the content cannot be parsed properly.
Best wishes,
Ivan Dimitrov
the Telerik team