list nodes under taxonomy term

this is a similar request to the one made for the 6.x branch here https://drupal.org/node/708902

it would be very useful if this module had an option that allowed the nodes under each term in a taxonomy to be included as child elements in the generated block.

for example: a taxonomy "Categories" with terms "News", "Sports", and "Sports/Chess", and each term has the following nodes assigned with that term:

News: Story A, Story B, Story C
Sports: Story D, Story A
Sports/Chess: Story E, Story F

would produce the following block:

News
----------Story A
----------Story B
----------Story C
Sports
----------Story D
----------Story A
----------Chess
--------------------Story E
--------------------Story F

note that the same node can show up under multiple terms (could be an option).

finally, this would be nice to be used to generate a Menu as well (as Taxonomy Menu tries to do but does not handle nodes under terms either).

thanks for the useful module.

peace