Thanks Matt,
I did wonder if it was something like that because we have a similar problem with Trickle - the ability to set trickle up at article level and apply to children doesn't seem to work - I was speculating it was because the properties.schema would have applied default settings to the child blocks as well, which are overriding the settings at article level.
Perhaps where properties cascade down like that there is a need to add an _overrideParent attribute on chidren?
Nick