Hi Glyn
1. I've looked at their latest release source code. It seems that they propagate all properties (both private and public) and there is no way to turn it off. I'll write a test to confirm this. So I guess the answer is 'partially yes but rather no' :)
2. The problem is I can't get all the tests pass on the original project :) I've tried to do something about it but then I gave up. While I developed I ran only PropertyPlaceholderTest and my PropertyPropagationTest (they are very much alike in the setup procedures). They both pass. However, I understand that rules are rules so I should ensure that tests pass. I'll try once again to get the original project's tests to pass. And if I succeed I'll run them with my patch applied. However if I don't succeed I may require your help to get the original tests to pass.
3. No new dependencies except from Apache Felix Configuration Admin version upgrade from 1.2.4 to 1.2.8.
4. I'll start working with the docs.
5. As for raising a bug - should I do it already? A new one or is there an existing one?