Let’s take questions one by one.
1 Master document creation
A master document is always created fresh, i.e. it inherits from the bare default factory template. There is no UI to base a master on a user template. The only way to link a master to a template is to use the TemplateChanger extension.
A master doesn’t “take the shape” of the first imported document. When scanning the sub-documents, if the master sees an unknown style (in its current dictionary), it imports this style into its dictionary. If the sub-documents contain conflicting style definitions, the one defined in the master or the first met sub-document will be used.
Formatting a collection of master+sub-docs is based on style names and the definition in the master is the one in effect. This allows many “interesting” tricks but they are advanced usage.
2 Template modification propagation
Template modification propagates only to the document based on the template. A document is “based on a template” if it was created with File
>New
>Templates
(or if rebased by TemplateChanger). Double-clicking on an .ott template initialises the document with template contents but does not keep the relationship.
Thus, a sub-document will be updated but a standard master won’t (because the standard UI doesn’t allow to base a master on a template). Only TemplateChanger can alter a master to associate it with a template.
3 Template-based master
There is no “master document template” (unless you mean “template” as an initial file you duplicate to start your document, but this is not what LO technically defines as a template; a template is an .ott document which has special properties, creating initialised .odt files, never .odm).
If your template has “initial contents” (besides styles), create a standard document from it and save it as a master. Use then TemplateChanger to re-establish the link with the template. Without initial contents, apply immediately the TemplateChanger step.
4 Centaur ?
I don’t think so.
But using master+sub-docs, all based on templates (not necessarily the same – don’t do it in the beginning, this is very advanced usage), requires a very strict discipline where you exclude any direct formatting. Direct formatting is a hindrance in “ordinary” documents but becomes hell in master+subs context.
If you want your template to be the formatting conductor, you must not under any circumstance alter your styles in the master or the subs. This must be done only in the template, which implies many close-reopen steps while you’re still hesitating on the look of your styles.
One last advice: don’t name your styles for their visual effects. If you decide for a radical different look, your name is no longer valid. Adhere to the semantic styling method where style names designate the role of the paragraph, character, page, frame, list in the discourse, the significance of such objects. Thus the name is still relevant after appearance has changed.
5 Template change propagated to master
This is possible and highly desirable. But it is not offered by out-of-the-box LO. You must install TemplateChanger and apply a small procedure.