Yes, Create and Ungroup are now greyed out in the Arrange menu.

I find editing the object within a group, Flexible or Freehand, easy enough to do in situ. Resize, colours, moving around. Having said that, sometimes, and often enough to become really annoying, moving the objects around does that disappear/multiply thing. Right dragging to copy is 50/50 whether it works as expected, or looks like you're simply dragging until you release, then it copies. It doesn't appear to be consistent.

Using the menu buttons as an example, I can make glitch at will. There are 5 buttons. I can move them individually, I can move ALL of them, I can move 1 to 4, or 2 to 5. But, if I move any combination that includes 1 and 5, the non-selected items disappear until I release the mouse. This makes quickly moving objects becomes extremely hard to do as I'm guessing when to release.

Yes, dropping a Block onto a standard page is just a...thing. It isn't really a group, as you can't DO anything with it. Ungroup it and you can't even move it. Standard sites are from Venus, Web Blocks are from Mars.

I haven't even tried to determine what makes a WB template. I just opened the default Xara template, deleted the nav bar, header bar and logo, changed the default fonts to the ones I want and saved the template.

Why do you say the only sensible way to work with Blocks is the Arrange View option? I admit I don't like the forced variant, but presume I'll just become accustomed to working with it. At the moment, I'm paranoid that the variant will do something stupid, and I won't know, as it did on my first real foray into Blockland. Having played more, it would appear that it was likely something I inadvertently did, as no blocks have run off and sulked in a corner since.

It's too early for me to say which method I'll naturally gravitate to, but there are a lot of faults with the standard site system that Xara turn a blind eye to, so we should be used to juggling.

I'm now going to run the home page hero image (blue Xara logo) through Graphic Tracer. The fuzzy edges are making my teeth itch.