Parent not Saved when Post Propagation Direction set to None

Post Propagation Direction is behaving in a way that's confusing to me. I think it's a bug, but maybe I'm misunderstanding it :-)

I don't wish to have group posts propagated in either direction, so I set Post Propagation Direction = none.

This has the side effect of causing the module to ignore the Parents setting when I create a subgroup.

Setting Post Propagation Direction = "Up the tree" allows the Parent setting to be saved.

I did some digging around ... hopefully I'm not about to make a fool of myself:

In hook_nodeapi in V2.0, the parents of a subgroup were saved with:
   og_subgroups_save_parents($node->nid, $node->parents);

In 3.0-dev, it appears to be saved with:
   og_subgroups_save_family($node, variable_get('og_subgroups_prop_type', 'none'));

In function og_subgroups_save_family there's the following:

<?php
   if ($family_type == 'none') {
    return FALSE;
  } 
?>

I think some logic needs to be added to distinguish between group content nodes and subgroup nodes.

Thanks!