I think you are right about the fall-back template system. It makes more sense having it work the way you describe.

Thank you for pointing this out. And for explaining the trick of turning off modules and themes when having problems or upgrading.

And I have to admit, having the templates as real files in stead of as data tucked away in a database makes it a lot easier to work with, so so far I think that is an improvement (though it had me cmpletely baffled to start with - probably because I have been working with the old system).

Another added benefit of putting them in with the themes is that you can change them based on the theme used. Which I don't believe was possible with the old system.