This feature is as important as ever with the new addition of conflict detection and merge features from VSCode for the web. 

https://powerpages.microsoft.com/en-us/blog/configuring-code-components-properties-from-the-design-studio-now-available-in-public-preview/

As the intention of Web templates as components | Microsoft Learn seems to be to allow makers to reuse these components easily - one glaring omission is that Design Studio lacks the ability to add custom components (Web Templates with manifests).

Seems like it would be an easy win to add a section for Web Templates and allow developers to open in VS Code.

The conflict resolution would be great to have. 

Additional thoughts on how to make working with Web templates better.

1. In web templates section have 2 or 3 collapsible groupings 
2. Components - Items with a manifest
3. Page Templates- Templates that are related to a page template
4. Other
5. Alternatively (since a Template may be a page template and have a manifest) Just having some sort of visual indicator for if manifest is present/is related to a page template
6. Add a GUI for working with manifest of a web template. Options in the '...' 
7. View Manifest - Show a pop up with manifest details so users know what templates inputs are and can read description
8. Edit Manifest - Would be nice to have a low code way of authoring manifest so user error is reduced
9. Create Component - If the web template was not a Component open editor to add component definition 
10. Selecting a web template in '...' Create Component then allow editing the manifest with low code tools. 
11. Add way to add a template as a component in the same menu as adding 'text', 'image', 'video','button', etc. 
12. Preferably multistep process where select "Component" then a listing of components including details from manifest I am thinking something similar to when you pick a PCF control on a model driven app. (Actually adding a thumbnail to web templates would be a cool concept too for the content editors to see perhaps a preview of what they are getting) 

Credit to Eric Sutter who posted this idea 9 months ago in Power Pages Idea forum - which doesn't seem to be used by Microsoft's product team.