Minor change. Relocated the call to the drupal_alter function that allows other modules to override the template title based on the template name, so that it can now affect the empty template (used when adding new templates to the field)
API Changes:
Template definitions can now have a 'description' and 'thumbnail' property. Description should be a one-to-two sentence description of the use and purpose of your template. Thumbnail should be a path to a 96x96 pixel thumbnail to represent your template.
Fix recursion in fieldsets and vertical_tabs inputs with new API changes. input_definition is now passed along with input_values to most API functions.