Anthony,
I dug a little deeper into the latest dev release and your patches and things look much better.
With your patches I can confirm: Default pages are indeed created inside the namespace! Index works as it does right now. Default pages appear as regular pages. Not sure if it should be any different.
Breadcrumbs seem to work again. However there may be a bug. The default page shows up as a decendent of it's namespace. Any page inside the same namespace doesn't show up at the end of the breadcrumbs, just the >> symbols.
Thanks for your testing, sorry for the unjustified optimism and related effort I generated for you with these patches...
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