Hi Andrew
You are not dreaming... ...yes you can do this.
All you need to do is select that VI as a Merge VI (artifact) or to Place VI Contents when editing the palettes (also I recommend checking out VIPM 2010 as it makes editing the palettes really easy too).
Check out the Nugget Penman here for more info on it.
As for dropping an actual template from the palettes - you can vote for this Idea