Hi Roger,
From my understanding, ETP does a similar thing to your news application. One of the parameters you can set is the ETP application, which can be "default", "news", or "faq" (or roll your own if you like). Depending on its value, the mounted ETP instance will behave differently.
Sorry if I'm not explaining it well. I'm doing a poor job of juggling sitemap and ETP jargon. The best thing to do is install ETP, mount it somewhere, create a few pages and subtopics, then check out the sitemap (ideally, with the "show package name" patch installed). That should definitely clear things up better than my explanations! :)
Don, I totally agree with your suggestions for the sitemap. And, in general, while there are many issues with the APM, sitemap, permissions, etc, I'm happy that I can find ways to use them, even in their current state, to get stuff done. And I'm even happier to be part of a community that will tackle all these issues over time with the goal of making OACS the best product of its kind.