I've been confused by the:
This area uses the following page as a template
..setting on the Page tab of the area settings.
If I select another area as a template, it doesn't really create a
new area with the other area as a template. It just takes you to
the other area. When I make a new list, it goes in the other area
and when I add list items, they go in the other area and when I
switch it back, they disappear and remain only in the other area.
Does this make sense?