Oh, I see, right. The sitemap doesn't let you *change* the location, only the name with "rename". I think there is a suggestion in the bugtracker somewhere to add that.
I'm glad you found a programmatic solution. What seems to work from a UI perspective with /admin/sitemap (back-up first, in case this does't work!):
1. unmount application (subsite "dotlrn" or "clubs" using your example)
2. add folder with new location to base subsite (do not mount a new application, call it "OFFICE" or "AREA" using your example).
3. click "mount" cooresponding to new folder. a list of unmounted packages will be listed.
4. click on the application you want mounted in the new location.
done!
cheers,
Torben