are all the features present in Context module exist in Panels?
one really interesting feature is that Context can replace the Block system, selectively adding your new "stuff", like existing blocks, breadcrumbs, setting active menus, etc, in what they call reactions... based on conditions which you can set (users, roles, paths, taxonomy, node types, views, languages, an always context, etc.
the contexts you create can also be exported for later usage.
it is particularly useful because you can construct basic "block" layouts for reuse in multiple sites, something around the lines of Views, Panels and Features.
on the downside, you can't really rearrange the layout of these blocks (like place them side by side with different spacing, apply CSS or whatever)
i've noticed that with Panels i can create Mini Panels, which can include multiple blocks, and add them to the block region, just like a regular block (but containing blocks) - not sure, but seems less broader in the sense of selecting "conditions", like detecting language and menu, and "reactions", like selecting the active menu and setting the breadcrumbs.
so the question again... does Panels do the same? if not, will Context features be eventually added to Panels in the future?
i'm figuring though that they can live together - and possibly work together by making Context set the conditions and then add reactions for menus, breadcrumbs and blocks - blocks which could be put together with Panels.
but it would definitely work better and have less impact on performance with a single module
nice work, keep it going ;)