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@kingsinger: I like the idea (I prefer the new instances at the top as well). It's now a compile-time option in the most recent version (download it from the http://pxldot.com/projects, look near the top of the script).

@whpalmer: I may do the Growl thing in the future. Two things for the dropped folder. Out of sight, out of mind, so I think Dropped folders, which aren't often seen, makes it easier to forget about the projects and for the system to fall into disrepair. I also think it's non-canonical in OmniFocus: Dropped status indicates that you had initially planned to do it, and decided against it. On Hold means that you plan on doing it at some point. I simply think the nature of templates makes them better suited as On Hold. No need to get too theoretical, I suppose, but that's my opinion :)