[Ken Case]

Sorry, yes, the current default behavior is that things only move out of the inbox if you assign them to a project. If you're synchronizing with a Mac, you can change that default to move items out of the inbox if you've assigned either a project or a context (and the phone will honor that Mac setting), but unfortunately there's no way at the moment to edit that setting directly on the phone itself.

Obviously, this isn't ideal. I think there's a good argument to be made that the "requires either a project or a context" behavior should be the default rather than "requires a project". I'll talk it over with folks here, and we'll see what we can do to improve this in a future update.