I've just checked in a bunch of changes for block-containers complete
with test cases. I'd appreciate if someone could run these tests and
check if I'm interpreting correctly.
The whole start-indent inheritance thing is quite interesting as it
produces strange effects from a stylesheet developer's POV. No wonder
some commercial implementors chose to break inheritance in certain cases.
The test case where you can observe this effect is block-container3.xml.
block-container4.xml is interesting, too, because the way I did the
block-containers made me add start-indent=end-indent="0pt" on the nested
blocks so they don't inherit indents from the block-container.